Options strategies with limited risk, unlimted profits potential, yet no time-decay?

Discussion in 'Options' started by crgarcia, Nov 10, 2008.

  1. Are there Options strategies with limited risk, unlimted profits potential, yet no time-decay?

    To be used mainly for Agricultural hedging.
     
  2. hdawg87

    hdawg87

    There is no such thing as an option without time decay. Options, by their very nature, decay as it gets closer to expiration.
     
  3. The Ponzi Hedge???
     
  4. Options have time decay, true.

    Some spreads reduce time decay, but they have limited profits potential.
     
  5. You might do better with this question asking for +theta as to saying NO time decay. All options expire at some point.
     
  6. Buy a put, sell a call spread - do the whole trade at flat.

    Can't eliminate time decay.
     
  7. wow.....is there a way to print money legally?
     
  8. oh hai.
     
  9. Hi Crgarcia,

    Try this:

    Buy a call spread out of the money, sell a put spread out of the money, theta neutral/cost around zero.

    The risk is limited (put spread), no time decay (theta neutral), and unlimited profits potential since it is an almost self financing position. :D
     
  10. <b>unlimited profits???</b>

    You own a spread. That limits profits.

    You sell a spread. That limits profits.

    Mark
     
    #10     Nov 10, 2008