Just my guess:
A realised loss in the options can be important or even critical, especially if always keeping 100% fully invested in either stocks or options, for analysis sack.
Why not simply buying stocks or keeping just cash after crash?
After crash, buying the same quantity of extremely...
One worse scenario is after a black swan alike crash the ATM options to buy would be extremely expensive due to High IV, disregarding spread! Usually a/the poorest timing for initiating/going long gamma! imo
Options risk profile is not as linear as stocks. Saying they, ATM included, are the...
imo, not exactly the same.
Perhaps a stocks holder would keep and hold the position further for a long period of range-bound or until recovery, whereas an options holder would have to quit the now OTM position with a realised loss due to expiration.
Just 2 cents!
When DTE remaining not too far away, a DITM could still possibly become an OTM on expiration day after encountering anything similar to black swan events, potentially total wipe-out!
Would it be possible that trading with different time-frames as well as expected outcomes (strike, IV, DTE, et.) could provide different answers? I am just wondering!
?
PS: Answer for the next question is here! :) https://www.thesun.co.uk/archives/news/39542/which-way-is-the-bus-travelling-kids-brainteaser-is-leaving-adults-baffled/
" 100-300% Yearly Returns Discussion "
The common threshold is 500% for ETers on this board to be interested in starting this kind of discussion.
You're very lucky one!
Now I can have 2 answers:
...
-1=42;
0=46;
1=49;
2=51;
3=52;
4=52;
5=51;
6=50;
...
and
...
-1=50;
0=48;
1=49;
2=51;
3=52;
4=50;
5=43;
6=29;
...
...
Both can be correct answers based on individual maths formulas, imo, I guess.