(almost) riskless strategy ?

[kiwi1]

Someone said reallife optionchains dont have any profitable trades or asked for specific examples

how about this for example:

SPY sep2010 (85/95) put spread now is at credit .30 (0.41 - 0.11)

100 verticals like that = margin 100K
for 3K return over four weeks.
commission is a couple hundred.
return/margin at aprox 3% per mon.

Aprox odds of underlying touching(expiring) in dangerzone is less then 10%(5%)

This was first random that I looked up - I think we can do better if we try to look harder and play around.

I understand the concept of picking pennies before the steamroller...
but somehow seems like there is a bunch of free money on the road

 

[ForexForex]

Quote from kiwi1:

Someone said reallife optionchains dont have any profitable trades or asked for specific examples.

I assume you are referring to me.

Quote from kiwi1:

how about this for example:

SPY sep2010 (85/95) put spread now is at credit .30 (0.41 - 0.11)

100 verticals like that = margin 100K
for 3K return over four weeks.
commission is a couple hundred.
return/margin at aprox 3% per mon.

Aprox odds of underlying touching(expiring) in dangerzone is less then 10%(5%)

This was first random that I looked up - I think we can do better if we try to look harder and play around.

I understand the concept of picking pennies before the steamroller...
but somehow seems like there is a bunch of free money on the road

You have missed a small detail. Go back and read this thread, and see where your trade fits into this discussion. You get a F for your post.


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[MTE]

Quote from kiwi1:

...but somehow seems like there is a bunch of free money on the road

No such thing as free money! Think otherwise and you are setting yourself up for a very nasty surprise one day.

 

[kiwi1]

Quote from ForexForex:

You have missed a small detail.
Go back and read this thread, and see where your trade fits into this discussion.

Do you mean not deep enough?

 

[ForexForex]

Quote from kiwi1:

Do you mean not deep enough?

You are Deep OTM ...... Try Deep ITM (calls or puts).

I get the feeling you forgot about mentioning a DeepITM-Put-Spread on some major index underlying in your original post, trade #2.


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[spindr0]

Quote from kiwi1:

Someone said reallife optionchains dont have any profitable trades or asked for specific examples

how about this for example:

SPY sep2010 (85/95) put spread now is at credit .30 (0.41 - 0.11)

100 verticals like that = margin 100K
for 3K return over four weeks.
commission is a couple hundred.
return/margin at aprox 3% per mon.

Aprox odds of underlying touching(expiring) in dangerzone is less then 10%(5%)

This was first random that I looked up - I think we can do better if we try to look harder and play around.

I understand the concept of picking pennies before the steamroller...
but somehow seems like there is a bunch of free money on the road

Be careful. Fomex-Fomex may want to split hairs about whether that spread is ITM or deep ITM. LOL

 

[Martinghoul]

Quote from MTE:
No such thing as free money! Think otherwise and you are setting yourself up for a very nasty surprise one day.

+1

Hard to find advice more sage than this. If you think you've figured out some get rich quick scheme that the mkt completely missed, most likely you need to think again. It's infinitely more likely that you, rather than Mr Mkt, is the sucker.