![Check Your Calendar [Spread]](https://www.interactivebrokers.com/campus/wp-content/uploads/sites/2/2025/05/pod20250506mtkcham_coverimage-700x394.jpg "Check Your Calendar [Spread]")
Join options educator Mat Cashman for a deep dive into conversion and reversal strategies – powerful tools used by professionals to capitalize on mispricings in the options market. In this advanced-level session, we’ll revisit the fundamentals of put-call parity and explore how temporary deviations from this equilibrium can signal strategic opportunities. You’ll gain practical insights into the construction of synthetic stock positions and how they are combined with physical stock to create market-neutral trades designed to exploit inefficiencies.
Mat will walk through real-world use cases, execution considerations, and the trade-offs involved – covering everything from early assignment risk and dividends to margin impact and transaction costs.
What You’ll Learn:
- Put-Call Parity in Practice: How the relationship between puts and calls underpins synthetic pricing – and what happens when it doesn’t hold.
- Spotting Arbitrage Windows: Techniques for identifying market dislocations where conversions or reversals may make sense.
- Strategy Mechanics: How to construct and manage these positions, with emphasis on timing, sizing, and execution best practices.
- Risk Factors to Consider: Learn to navigate key risks, including early exercise, dividend events, and cost of carry.
Whether you’re refining your existing knowledge or looking to level up your understanding of options pricing dynamics, this session will help you think more critically about how and why these strategies are used.
Disclosure: Interactive Brokers Third Party
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from OCC and is being posted with its permission. The views expressed in this material are solely those of the author and/or OCC and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Options (with multiple legs)
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. "Characteristics and Risks of Standardized Options"