Guaranteed way to make big risk free money in options.

just ask to all the smart guys who tried this on expiration day in oktober 1987 what happens when you try to be too clever

 

You need to have $1,600,000.00 to cover the initial option margin requirement. Not to mention it is extremely risky.

AZO 2009 February far OTM jumped 3000% on the expired day.

 

Yeah but look at the amount of outstanding shares and volume compared to SPY or GE.

Come on now.

 

not sure what your point is? the s&p dropped 2.5% on expiration day october 1987.

 

aside from the risk factor which everyone is jumping on, no one has mentioned that practically speaking this idea won't work. good luck selling 10000 deep otm contracts the day before expiration. which option has that much liquidity? only atm options have decent volume near expiration.

this idea only works in a demo account.