Is this strategy possible?
- Thread starter Sanaz3
- Start date
Quote from Sanaz3:
Thanks Xflat. I understand what you guys are saying. What I first had in mind was similar to this mathematical graph, where the result (in math) is always positive.
Buying a combination of ITM money Call/Puts looks similar to the above...so it had me thinking to come up with a strategy that looked like this!
I'm attaching what i believe to be a more accurate picture- showing a large chunk of the curve below the break-even line. Hope this helps
Quote from Sanaz3:
Thanks Xflat. I understand what you guys are saying. What I first had in mind was similar to this mathematical graph, where the result (in math) is always positive.
Buying a combination of ITM money Call/Puts looks similar to the above...so it had me thinking to come up with a strategy that looked like this!
any time you can factor out the risk, your first question should be, "how come the hedge funds and other institutions didn't think of this, with their billion dollar research budgets?"
The answer usually is, "because it does not work that way"
That is why newbies often spend years, chasing after simplistic methods and other brain storms that have already been considered and dropped by millions of newbies before them.
One of my favorites is, "how come you cannot just do the opposite of a losing strategy and make money?" That seems to appear every month on ET like clockwork