Weird option strategies

i couldn't said it better

 

Can you explain in layman term what is variance?

Appreciate it.

 

Rhetorical answer -- the answer is: of course it is.

underlying rallies 1% to 101 and then sells off 1% (99.99). 2x fund rallies 2% to 102 and sells off to 2% to 99.96 [difference is 4 cents]

underlying rallys 10% to 110 and then sells off 10% to 99. 2x fund rallies 20% to 120 and then sells off 20% to 96. [difference is 3 dollars]

 

Everyone posts about the reversal case, rather than the equally likely continuation case.

 

that is because volatility is a proxy for the choppiness of the path

 

No, it's a 'proxy' for the average magnitude of daily moves, reversal or continuation.