There's no free lunch. While I don't doubt that this strategy is possible - the underlying principles behind it are well known for as long as inverse leveraged

There's no free lunch. While I don't doubt that this strategy is possible - the underlying principles behind it are well known for as long as inverse leveraged ETFs have been around. What that tells me is that there is minimal opportunity for arbitrage - and that any pricing built into the ETF or the options is accounting for the risk. As the author states - you might have difficulty borrowing these stocks to go short - and if you do you will be paying up for that. Borrow rates fluctuate on a daily basis which is not mentioned in the post. The author suggests selling the stock synthetically with options. You will be paying up for the option premium. Additionally, being stuck with a short-dated short naked position in an option is a recipe to blow all your capital - especially if there is an "unexpected" move right before expiration. Just be careful!