(Almost) Risk-Free Futures Trading by Leveraging Options

Too Long; Didn't Read

Using an options strategy, we can trade any sideways futures strategy with absolutely 0 risk. Price movements up, down, or sideways all yield profitable results. The value of both the calls and puts will reduce over time (as their distance to expiry is one of the things that gives them value — the uncertainty and possibility of volatility in this case means that they’re worth more now than they are tomorrow. Eventually, by expiry, they expire worthless. The more the price moves upwards, the less the put is worth — all the way down to worthless.