I just found a free money options strategy. 100% risk free, you won't believe your eyes. Lets say you have a stock trading at $20. Write a put against the stock, strike $45, and sell the option for $25. This way the option it right at the money. What do you guys think? A good strategy no?
If you are psychic, it works. You have unlimited downside, How about buying 100 sh of xyz at 25$ and selling a 10$ call @18$. Anything above $10, you lock in the time value of 3$ as your profit (although actual time values are probably even smaller--but a profit is a profit, right?). Your break-even if the stock declines is 7$. Looks like a high-probability profit here, but an extremely small one. Instead of a near-month option, use farther-out options or even leaps. Greater time values, but return is less because the returns are spread out over a longer period.
sounds like an awesome strategy. but i have a better one. how about buying a stock at .01 and selling at 999.99? risk a penny for 999.98 reward.
Yeah, don't you get it, first he sells-to-open and then he sells-to-close thus realizing a risk free profit! Brilliant!
What an idea !!! Sheer brilliance !!! Are there any mortgage brokers here? I need to raise some money fast!
i just sold some puts.. because its a bull market. wish me luck! i mean im minus puts at IB, so its like i wrote puts i think