Free money option strategy - seriously 100% risk free

F

failed_trad3r

I just found a free money options strategy. 100% risk free, you won't believe your eyes.

Lets say you have a stock trading at $20.
Write a put against the stock, strike $45, and sell the option for $25. This way the option it right at the money.

What do you guys think? A good strategy no? :D
 
If you are psychic, it works. You have unlimited downside,

How about buying 100 sh of xyz at 25$ and selling a 10$ call
@18$. Anything above $10, you lock in the time value of 3$ as your profit (although actual time values are probably even smaller--but a profit is a profit, right?). Your break-even if the stock declines is 7$. Looks like a high-probability profit here, but an extremely small one. Instead of a near-month option, use farther-out options or even leaps. Greater time values, but return is less because the returns are spread out over a longer period.
 
Quote from failed_trad3r:

I just found a free money options strategy. 100% risk free, you won't believe your eyes.

Lets say you have a stock trading at $20.
Write a put against the stock, strike $45, and sell the option for $25. This way the option it right at the money.

What do you guys think? A good strategy no? :D
More...

sounds like an awesome strategy. but i have a better one.

how about buying a stock at .01 and selling at 999.99? risk a penny for 999.98 reward.
 
Quote from ptrjon:

so you write a put, and then you sell that put?
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Yeah, don't you get it, first he sells-to-open and then he sells-to-close thus realizing a risk free profit! Brilliant!
 
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