Easy money

>>1550698
Isn't that basically just a reverse iron condor?
It's ultralow risk but also very low reward.

Because options obviously have expected volatility priced into them. You're just betting that the price will change more than the market expects it to, and that in no way is guaranteed money.

because you need vast amounts of capital and speed to profit

>>1550698
ok

>buy calls and puts
>stock trades sideways

>buy calls and puts
>stock goes up
>exercise calls
>worthless puts

>>1550698
Because the options would be priced higher. If a stock has been swinging up and down 10%, buying puts and calls at the same strike price will likely have prices that require >10% price swings. If the stock moves a wopping 9%,you're fucked. If it doesn't move at all, youre fucked. If it moves >10% 1 hour after your options expire, you're fucked. Just look at the pricing of options on the market when it's open and you'll see why everyone doesn't just do certain things.

You could sell OTM puts and calls below and above the original calls and puts to hedge your risk, but that caps gains and adds significantly to transaction fees.

>>1550698

Your idea resembles a straddle or strangle, depending on wether the options are in or out of the money.

Of course it works, but not as good in the moments you described. It'd work better if you anticipated the volatility right. But that's a game you almost cannot win.

Let's suppose you find an anomaly in the last or so reports, and everything points toward an either spectacular or horrible report in the next quarter. Do you really think a part of this would not be a) recognized by other analysts or b) already priced into the options and the stocks themselves?

>>1550701
Straddles and strangles have infinite gains potential if the underlying stock finishes outside a range.

>>1552438
The powerball has infinite gains potential if the 6 numbers chosen are the same as the ones on my ticket.

Because of Theta and Vega, your losing option will most often cost more than the profit of your winning option.

>>1552444
If your analysis points to the stock trading sideways open up a butterfly/condor spread. If you think there's too much volatility open up straddles/strangles. You can also play with the ranges to make them more aggressive/conservative.

Picking up numbers for the powerball hardly compares to option strategies.

>>1552462

Care to explain further?

I though you're always in for a win if the stocks trades outside of the defined straddle range? Or only if you actually excercise the options?

>A stock is priced at $50 per share. A call option with a strike price of $50 is priced at $3, and a put option with the same strike price is also priced at $3. An investor enters into a straddle by purchasing one of each option.

>The position will profit at expiration if the stock is priced above $56 or below $44. The maximum loss of $6 occurs if the stock remains priced at $50 at expiration. For example, if the stock is priced at $65, the position would profit:

>Profit = $65 - $50 - $6 = $9

That's what investopedia says

>>1550709
>someone on /biz/ actually understanding and correctly applying the emh
good job on your post

You can do this. It is easy and people do do it all the time. It's a legit options strategy.

Can't wait until I've saved enough to get started investing and trading myself. I've already got some investments in mutual funds but I want to expose the profits to even more risk.