opinion on future and options combined strategy

have anyone tried this risk free strategy combining futures and options?
going long nifty futures, selling call option and buy a put option same strike price, vice versa.

Its always a loss because for every pair liquidity is lost and is more or less same. Future is > spot and it looses till expiry and CE greater than PE.

What CE will gain futures will loose in between due to buy sell price gap we ll make losses.
Better is to do buy stock sell futures which is also less these days.

lemondew, suppose you buy nifty future 7660, sell 7600 call at premium 125 then buy 7600 put premium 65. nifty future and spot converge on expiry day. when you you calculate the loss it is 7660-7600-(125-65)= 0, last day of the expiry month. in essence, no profit no loss.

Have you considered brokerage and slippage?

we may lose some points due to slippage, higher volatility incur more loss. brokerage charge could be added up to 4 points. unless if we could exit the position before expiry with a profit by monitoring the market movement. i am paper trading this strategy for 2-3 months to identify potential loss.

Yes ,

You should also add cost to your efforts.

better way is sell a pair and then keep future long if the price is above pair strike level and short below that. You will endup earning the pair sum - brokerage - slippages

Thats a simple way and thats what I was telling in DS strategies about adjustments... Futures will give delta of 1 and in the money will also give losses of -1 to nullify it. Whipsaws up and down around strikes will give futures losses.

Again we wd need probability to work in our favour

Best I ve finally decided is to put a strategy any condor, butterfly, straddle. If it isnt working just take the loss and move on. Just run it as per the strategy. Take loss or book profit as per plan and leave. Any tinkering with futures and adjustments and so on generally has screwd up things for me.

Naked selling hence I dont prefer... Once it reaches one end it forces people to do things and even if the stock has to comeback to its mean one cant hope and wait...

yeah with less investment it's wise to choose conservative option hedging strategies. future and option combined could be dangerous to deal with. will paper trade future-options for few months.