Guaranteed way to make big risk free money in options.

[cvds16]

just ask to all the smart guys who tried this on expiration day in oktober 1987 what happens when you try to be too clever

 

[hoffmanw]

Quote from KINGOFSHORTS:

On Expiration fridays sell way OTM calls or puts for 1 penny.

10000 contracts will net you 10,000 dollars

For example GE strike 13 call for Feb. GE is no way in hell going to 13 by saturday.


This is a secret no one ever dare speak.

You make money allowing people to close contracts out.

Think of Office space, where that guy does a program to grab that extra penny left over from transactions that occur.

But this is the legal way.

You need to have $1,600,000.00 to cover the initial option margin requirement. Not to mention it is extremely risky.

AZO 2009 February far OTM jumped 3000% on the expired day.

 

[KINGOFSHORTS]

Quote from hoffmanw:

You need to have $1,600,000.00 to cover the initial option margin requirement. Not to mention it is extremely risky.

AZO 2009 February far OTM jumped 3000% on the expired day.

Yeah but look at the amount of outstanding shares and volume compared to SPY or GE.

Come on now.

 

[blackjack007]

Quote from cvds16:

just ask to all the smart guys who tried this on expiration day in oktober 1987 what happens when you try to be too clever

not sure what your point is? the s&p dropped 2.5% on expiration day october 1987.

 

[blackjack007]

aside from the risk factor which everyone is jumping on, no one has mentioned that practically speaking this idea won't work. good luck selling 10000 deep otm contracts the day before expiration. which option has that much liquidity? only atm options have decent volume near expiration.

this idea only works in a demo account.