what do you think of this strategy

[michael60]

This is with a $1,000 investment. Contract prices as of today


Buy 8 contracts of June $9.00 which costs $960.
Simultaneously sell 8 contracts of May $9.00 which gives me $800.

After that buy 4 contracts of June $9.00 which costs $480.
Simultaneously sell 4 contracts of May $9.00 which gives me $400.

After that buy 2 contracts of June $9.00 which costs $240
Simultaneously sell 2 contracts of May $9.00 which gives me $200.


Then I sell all my June calls ($1,680) and use that to buy back all my May calls which costs $1,400. I then profit $280 and can sell the calls I bought back for $1,400…I then have $1,680 or 68% over my initial investment.

 

[nazzdack]

1) Which contracts are referring to?
2) You would have no profit. You paid $1680 for the June contracts and sold them for $1680. You sold-short the May at $1400 and bought them back at $1400.
3) You'd actually have a loss with commissions and fees taken into account.