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In reallity, just a form of broken/raised wing condor In your example Core Position is 195-197-198-200 Put Condor + embedded 193-195 / 193-197 Verticals Most traders should, but don't evaluate whether risk/reward of selling FOTM Put Verticals are worthwhile as premium can realtively small

Whether you are paying/receiving premium is irrelevant to whether you are buying/selling the spread In this case the OP claims to be - selling for a credit - a debit spread He's just mangling the terminology, which might not seem important but can lead to expensive execution errors, and why...

You can essentially ignore any trader who says "selling an out of the money debit spread" :banghead:

https://www.hoadley.net/options/options.htm

You can save yourself a lot of pain (and inaccurate RiskGraphs) by using something like Peter Hoadley's Excel Add-In ... quite superb and great value for money https://www.hoadley.net/options/strategymodel.htm

LOL ... no, I was banned from ET for a couple of years for calling her out as a Fraud ... as Sosnoff/TastyTrade who were shilling her as a retail options guru were not happy (and had some editorial influence at ET) ... probably get banned again now :-}}

Feel free to block me, can put you in the same Turd Bucket with Sosnoff of TastyTrade who got me banned from ET for years after I called out his favourite GrannyGrifter "Karen The SuperTrader" as a fraud years before the SEC closed her down

Looks like #ShitForBrains @Quanto has thrown the towel in and DELETED all posts from all threads, just when it was getting fun !

I've had enough fun for the day, See You Next Tuesday !

Cost is irrelevant with synthetic positions when calculating MaxRisk ! Try applying your theory to other equivalent positions where one trades for a Debit, one trades for a Credit Bull Calls Spreads for Debit = Bull Put Spreads for a Credit Call/Put Flies for a Debit = Iron Flies for a Credit...

Feel free to enlighten the world on your new OptionMaths :-}}

Both of your examples; $9-$11 Strikes RegularStrangle = Debit $0.62 premium GutsStrangle = Debit $2.62 premium PremiumDifference = StrikeWidth = Box = $2.00 Both have MaxRisk $0.62 between Strikes Both have Identical PayOff Profiles Both have identical Risk ($0.62) v Reward

Feel free to show your workings for #1 including IntRate say 5% #2 Risk/Reward

I guess neither Options or Maths your strong suit !

2 basic issues: #1 you assume IntRate = 0; Diff between Regular/Guts Strangle < Strike Width (Box) when IntRate >0 #2 Risk/Reward identical; Regular Strangle is Not 4x more than Guts I know you are new to this game, but it's embarassing to see some of the stuff you post :-}}

#BullshitForBrains compares Regular/GUTS Stangle and claims Regular wins 4x more than GUTS Can't work out whether ... Parody or Troll ?

Why ? Interested in your logic for trading "0DTE NQ DITM covered call" ?

Wide Bid-Ask quoted on ICE are standard, but can usually trade at near Mid-Price Weekly Options ... there are Weekly Options (Flex Options) quoted on ICE ... but I do not trade them as cannot see Real-Time Prices on Exchange...

Brokers ... I use ADM as phone broker, ICE lists other brokers https://www.theice.com/equity-derivatives/retail-brokers Platform ... only one that produces RiskGraphs as far as I am aware is IBKR, which is why I cobbled together my own

No, just Index/Equity Options More accurately ShortVega rather than ShortVol