Examples demonstrating non-optimal & inefficient trade constructs

Here my concluding analysis (just confirming what was said already in the OP):

ITM LongStrangle (aka Guts) costs $2.62
OTM LongStrangle costs $0.62
Though both give the same GrossResult, the effective NetResult of the OTM LongStrangle is at least 4 times better due to the 4+ times better CostBase.
The proof is simple: 2.62 / 0.62 = 4.2258 times better (in this example with the said parameters of S, DTE, K, Premium (or IV) etc).

Said differently: when the same amount is invested in these 2 constructs then the result in case of a win for OTM LongStrangle will be 4.2258 times better than for ITM LongStrangle. Ie. a leverage factor of 4.2258.

For example when (hypothetically) $2.62 is invested in both, then the PnL for Sx=16 at expiration is about 18.50 vs 4.38 --> 18.50 / 4.38 = 4.22 times better result. That's the result using fractional Qty to invest the same amount of $2.62 :

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When are you going to put all your FairMaths™ to the test and trade it with real money?
 
When are you going to put all your FairMaths™ to the test and trade it with real money?
I'm already for a long time now trading, though not that much due to programming work to do etc.
But why do you ask? Is it anyhow related to the topic of this thread?
And have I to prove you anything? Since when?
And: no proof via real trading is required for this topic in this thread, because it is just pure maths. nothing else is required. Unfortunately, you don't even grasp this basic thing and come up with your posting above; it's embarrassing, man!... :-)

Ok then let me ask you a question too: you don't trade any options, but are replying to my posting in the Options board. How come? Isn't it illogical? What's your intention? :)
And what is this FairMaths and FairPuts stuff you mean? Do you know?
 
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I'm already for a long time now trading, though not that much due to programming work to do etc.
But why do you ask? Is it anyhow related to the topic of this thread?
And have I to prove you anything? Since when?
And: there is no proof necessary for this topic in this thread b/c it's just pure maths; nothing else required. Unfortunately you even don't grasp this basic thing and come with your above posting; it's embarrassing, man! :)

Ok then let me ask you a question too: you don't trade any options, but are replying to my posting in the Options board. How come? Isn't it illogical? What's your intention? :)
And what is this FairMaths and FairPuts stuff you mean? Do you know?

I ask merely for information, because you've started 20 threads in the Options forum alone in the past two months, going on about the same thing over and over and over again. So I was just wondering if the readers of this forum are going to ever get some live money trades from you.

You're charging a lot of eyeball equity to the forum. Where's the ROI for the readers?
 
I ask merely for information, because you've started 20 threads in the Options forum alone in the past two months, going on about the same thing over and over and over again.
It's clear that you are blatantly lying, b/c since you have no clue of options trading then of course everything in the Options forum then looks much like the same Greek to you... :)

So I was just wondering if the readers of this forum are going to ever get some live money trades from you.
The readers get high-quality postings by and from me. Everybody has the freedom to read or not to read my postings.
You're charging a lot of eyeball equity to the forum. Where's the ROI for the readers?
It's not my beer what each reader does with the information. I'm acting within the forums rules.
But I too have to read such endless nonsense crap of you with value ZERO, and even answering your stupid off-topic questions. I'll not do it any longer, so be careful before getting blocked :)
 
You already did that once before, and unblocked me after a couple of months of not being able to stay away from reading my posts without coming in /anon.
BS! I did it b/c of New Year, to give such idots a second chance... :)
Another Loser Bites the Dust!... Bye-bye! :-)
 
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BS! I did it b/c of New Year, to give such idots a second chance... :)
Another Loser Bites the Dust!... Bye-bye! :)

Some resolution. You should have made a NY resolution to post real money trades instead of spamming the forum with thread after thread trying to "outwit" and re-invent options math.
 
You must be hallucinating. B/c how were you able to post your above crap in this my thread then? :) You clearly lack some logic, man.
But I've enough of your stupid insults. One more insult and you will be blocked by me.

And: it was you who threw the towel when you posted this:

But unlike you, I was not rude nor triumphed over it. That's the difference btw. your character and my character.

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
 
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
I have no clue why and how you think I could be like them.
Anyway, enough is enough. Bye-bye!
 
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

Lol, I recall Karen the Supertrader...I did not think she was banned from ET though...Can't remember the exact details of why she stopped posting.
 
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