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OP, When I saw the title of this thread I figured I was in for some good entertainment. At the end of this mess I realise it has killed more brain cells than last nights fall off the wagon. Thanks, I think...

Sorry, I assumed from it's increased popularity here at ET that most had heard of it. Wrangles are call and put backspreads. Risk profile looks like a "W" at expiration.

Joking??? If so, forgive me. I'm a little slow on the uptake.

This is a martingale strategy. It works if you have the cash to indefinitely buy 30 point ITM verticals...

You're buying 30 point ITM verticals on each side for a couple points each. Consider that the risk and reward for the debit spread is identical to a credit spread at the same strikes. For instance your long 440, short 470 call spread is the same as a short 470, long 440 put spread. They...

It looks like a synthetic backspread or synthetic wrangle (ITM version with the longs split across two strikes). I don't think there's anything about this that is more preferred over using the OTMs. Risk is the big dips between short and long strikes (just like all backspreads).

Right. But [inaccurate] distributions contribute to skew and therefore we are right back where we started. Some insist that FOTMs are cheap regardless of skew (or distribution). I still believe they are fairly priced as are all options based on present market opinion.

Now I'm confused. First they're cheap, now they're expensive, oh what a quagmire I'm in...

When I was 18 the only risk I took on was forgetting to wear protection. I was quite the risk taker in those days.

I'm not following your logic. Market prices are for the moment, they are not static. If you know the "true" value of an option (volatility and distribution) and the present market price differs (either more or less expensive) then surely there are ways to profit. It's a moot point...

A good question would be what are you trying to accomplish by using different distributions? The effort of finding a more accurate (accurate to real) distribution would flatten the skew and possibly expose a market opinion that is different from the projected (and "maybe" more accurate)...

Agreed. I think simplicity is its benefit. Regardless of how complex the models and statistics become we still can't model human behavior without flaws. Therefore it is easier and more effective to account for those flaws in a catch-all (volatility) than it is to solve them. To further...

I'm not trying to be confrontational or abusive. I just thought the second question was a bit deprecating. As for the first question my only insight probably isn't very helpful. The modeling (and distribution) in this discussion are based on flawed assumptions. This is known. There are...

Of course. I didn't mean to insinuate otherwise. I enjoyed the Wrangle thread and was just being a wise ass...

I saw mention of the hedge but no specifics. I have seen riskarb post positions short gamma without a hedge (both vanillas and exotics). Regardless, the journal was just an example (perhaps not making my point concrete). All I'm saying is that people can sell premium (naked) successfully...

Easy, just search for "Perfect Position" and "Wrangle". You'll find all of Mav's secrets. Sorry Mav, I couldn't resist :)

I believed it was a reference. I've read posts of yours in the past and know you have both knowledge and experience in this industry. I was merely trying to make a point that there are many ways to be successful and the only consistent rules I've experienced pertain to creativity and risk...

Perhaps the mysterious patient is mparkernys himself. Maybe his IP resolves to the Mental Health Wing...:)