So it's not a risk-free trade. Its a directional play with 100% risk to downside to start with. If you are lucky and it goes your way, sure, you can sell a call with higher strike but I don't see much use in doing that. You could then lose all your 'earned' profits, losing that is yet another risk of giving away 100% of uour profits. Once in a while you do have 100% risk free options trades but this happens rarely, eg AMC at that point due to retail craze and related elevated implied volatilities. You have to set it up straight as a risk defined short straddle / butterfly and take in more credit than the width of both credit spreads

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Juri von Randow (www.macrodozer.com)

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