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Guaranteed Profits in Stock Market Options
- kqr2 18y agoThe article's punch line: The bad news is that an outside investor must have some brokerage company execute the mixed strategy on an "all or none" basis. Unfortunately, this has proven to be virtually impossible. However, it is an example of the action in derivatives that many brokerage companies use. Although different, this reminds me of the "guaranteed to win" casino strategy where you keep doubling your bets. This fails for two reasons: * Losing streaks can be very long and requires that you have access to a large sum of money since the bets are growing exponentially. * House limits prevents you from doubling indefinitely