Calendar Spread on Futures & a Option Straddle. guaranteed Profit Strategy for daily/week trade?

traderjo · Apr 20, 2020

Millionaire_Raj said:
Take SPX price on April 16 close 2799 . April 17 close 2873.55.
CA 2800 APR 24 Expiry April 16&17 price 56&89.8
PA 2800 Apr 24 Expiry April 16& 17 price 53& 27.40

1. LONG SPX -2800 PA. Net profit = 74.5-33.8= 41*100= 4100 book this profit or sell IT! Call like 2770 and hold to get more profit . No more risk in this

2. Short SPX - 2800 Ca net loss =-74.5 +35= 39*00 =3900 loss
Sell 2830 put 50 and hold futures till expiry Any loss in future handled by ca , Put option sale premium nullify the premium paid for call option and any reversal will give profit or will end up in no profit no loss scenario.

Plain straddle sometimes lose value bcoz of vi, time etc and require movement of stock to be high to get profit. Where as tin the above scenario the profit is assured even for small move .When the stock move net is more , profit will be more in this case.
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Sorry I am confused .. are you talking about retaining realized profit? you keep using term guaranteed profit as if it is a pure arb of some sort!

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Calendar Spread on Futures & a Option Straddle. guaranteed Profit Strategy for daily/week trade?

traderjo