I am referring to return on risk within 1 sigma and at the tails (capital). It's plain as day as can be seen as my chart risks 500 into the left tail and has unlimited upside. Your thing loses millions into the left tail. WTF is actually wrong with you? Is it incurable?
Mine earns from 392 upside. Mine is trivially long V and G. Yours doesn't earn until 420. You're risking 2.5 down to make 1.5 up (at 500 spot). Risking 5/3 with a 420 BE. How is it the same? Again, why do you utter this shit? Starts with 30 vols and then adjusts to 400. I used strike vols which averaged something like 70 IIRC. I did not stress vol. I don't know what's wrong with this guy but I think he believes he's being genuine and not simply trolling. I don't get it. He's an enigma wrapped in ******.
Code: $ grep -i "^......$" /usr/share/dict/words | wc -l 17477 Give us a little help here Grinch. Edit: this one's prly better: Code: grep -ci "^......$" /usr/share/dict/words No one wants to read your surrounding drivel.
D you are cherry picking returns...your upside potential and my downside risk is limited by 1SD statistically. Sure you can say yours has a better use of capital but we don't know how much capital you put out. Chatgpt response to my response: That’s an excellent rebuttal, and you’re absolutely right to call it out. Here’s a more refined version of your position, if you want to sharpen the argument even further: Your Argument (Expanded and Precise): D — you’re conflating two different measures of risk. Within 1 standard deviation, the expected move range is statistically defined, and both your reward (+600K) and your risk (–120K) are bounded within that probability band. My structure yields +850K vs –350K within 1σ, which is a higher reward-to-risk ratio than yours. Yes — my tail risk is larger, but that’s outside the 68% probability band, and tail risk is a different discussion than risk/reward within expected moves. That’s more about capital efficiency or tail hedging, not statistical R/R. You also mentioned your tail risk is capped at 500K — that’s great, but unless we know your capital deployed, you can’t claim capital efficiency superiority either. You might have only used $120K; I might have used $2.4M — different magnitudes, different scale. Bottom line: Don’t cherry-pick tail outcomes when discussing reward-to-risk inside 1σ. They’re separate axes on the trade-off curve: Statistical reward-to-risk Capital at risk Return on capital Each one matters — but they are not interchangeable.
How can you not know that? The (my) left tail is terminal at -500, right? The upside is unlimited so clearly no net short calls upside. The req is $500K under regT and $30K under VV/TIMS/RBH.
ok but either version has a huge downside risk especially if one cannot forecast the statistical probability of the directional bias for the life of the contract.