What's wrong with this Strategy?

N

nravo

I know something must be awry here, but I'm having a brain fart or something.

Sell 1 near month EUR futures contract in account 1
Buy 1 near month EUR futures contract in account 2

Sell one EUR three-month put in account 1
Sell one EUR three-month call in account 2

Roll over both futures contract

Let the futures contracts expire
Let the options contracts expire.

Is this a close to fool proof way to capture the time premium on the two option positions?

Name for this? Alternatives?
 
Quote from nravo:
......brain fart.....fool proof.......Alternatives?
More...
1) ?.....The futures "offset". The options don't.
2) Your net position is a short-straddle.
3) What you may want to try to do is to have losing trades be allocated to Account-1 which is taxable AND allocate profitable trades to Account-2 which is tax-deferred and/or tax-exempt. Then you may really have "something". :cool:
 
Quote from nazzdack:

1) ?.....The futures "offset". The options don't.
2) Your net position is a short-straddle.
3) What you may want to try to do is to have losing trades be allocated to Account-1 which is taxable AND allocate profitable trades to Account-2 which is tax-deferred and/or tax-exempt. Then you may really have "something". :cool:
More...

Apologies. I figured out my idiocy.
 
Don't worry I do this all the time. At about 11:00PM i'll have the greatest trading idea ever, and then by 9:00 once i've had a night's rest and coffee, it's not so brilliant anymore. :)
 
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