← Options Glossary A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or may buy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount.
Discount Arbitrage
This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.