No Risk Option Strategy - Aussie Stock Forums

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  1. #1

    Default No Risk Option Strategy

    There seems to be a few of these about.
    Tree has some available for purchase and a few others who are option savvy have alluded to their existance.

    I have a few questions.

    (1) What would be the expected return in % terms for one of these trades on its completion,over what period of time?
    (2) Other than the stratagy itself what else needs to be considered---can it fail due to lack of liquidity?
    (3) Is the position sizing limiting---eg could I trade $100K or more using it?
    (4) Time does the setup occur regularly---or is it as rare as hens teeth?
    (5) Are we better off trading it on a more liquid bourse like the US? or DAX.

    Finally is it/theyTRUELY RISK FREE

  2. #2

    Default Re: No Risk Option Strategy

    Hi tech/a,

    I have yet to see any claim of 'risk-free' strategy that is not idiosyncratic, impracticable or just plain fuzzy math.

    Idiosyncratic = dependent on Market conditions that do not readily occur or are necessarily repeatable.

    Impracticable = requiring excessibly complicated or large capital outlays for minimal returns.

    Fuzzy math = illogical or fringe-mentality strategies.

    Each must decide whether they are hedging or speculating and IMHO better to develop trading skills that are 'risk-less' and put non-linear PROBABILITY of success in our favour ... my XJO system is an example: the purpose of which is to demonstrate it is possible and hopefully provide inspiration to others to work to develop their own systems.

    Cheers ...

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