i got it wrong!! the strike is 20, not 45!!! then its free money!!
Free money option strategy - seriously 100% risk free
- Thread starter failed_trad3r
- Start date
...and I thought I was an options noob. 
... boy, this is gonna end well.
hey could you tell me what the stock is so i can take the other side of these trades?
hey could you tell me what the stock is so i can take the other side of these trades?
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?
In some rare cases, you do have a risk. In case this is a non-standard option, if you hit that bid, it is you who is providing
a free lunch.
Is this a joke? Post it here then ...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?
I came up with a new strategy. On the day before expiration, sell a ITM put and hope you don't get exercised.
Good plan no? If the gamble works, thats free money!
Good plan no?
If the gamble works, thats free money!Quote from failed_trad3r:
I came up with a new strategy. On the day before expiration, sell a ITM put and hope you don't get exercised.
Good plan no?
Options that are ITM by 0.01 at exiration are automatically exercised, so your plan is destined to fail.