ROFL!!! Yea, It'll never happen..lol As a matter of fact I used to talk to a guy fairly regularly about otion related things when I first got into the futures side. He would normally do the credit spreads every month on the Nasdaq and/or SP full size contract. He had been doing it for a couple of years when I met him, and not long after I met him he started thinking the same thing you propose using the Nasdaq futures options. He did it one month and I forget how many he did, but enough that he was surprised the broker even put the order through. Did it again the next month with the same size that would have wiped him out if it went bad, but hey, no way tis gonna go bad...there outta da money. Month 3 he increased size, and the broker took the order and filled him. He probably declared bankruptcy to get out of the debt, but he lost HUGE!!!!! I called him that Friday, but he didn't answer, and I tried a few times the following week, but never heard from him again. Either he was to embarrased and disappeared, or he ate a bullet. The last time I tried to get ahold of him was roughly a month after the trade and the phone was disconnected. I didn't know him well enough to spend time finding out if he was dead or alive, but there is your example.
What if they announce late Friday afternoon, or even the rumor comes out just before close Friday they are going to Nationalize the crappy banks, or Ge Capital won't have anymore help because they are part of a larger company that can handle it over the long haul? The would drop like a rock, and you'd be at the gun shop. I also wouldn't think too many brokers are going to make a deal with that much risk. If it was as minimal risk as you say don't you think they would be doing it every month anyway?
