How could risking 9 to make 1 be more advantageous than risking 8 to make 2??? Are you guys delta hedging this shit,rolling or punting and praying?
Dyslexic??? I asked "Do you believe a structure where the ratio is 1:9, is advantageous to a structure with a ratio of 1:4?" risk:reward I want to understand how someone perceives risk:reward related to this specific structure. This is important to me. Please allow the nice man from Pawnee to answer.
I asked the OP to clarify and 1:4 is the Reward to Risk,not the other way around..You have it backwards...understandably so,which is why I asked. More to the point,if you look at his position and see what he's doing,you would know that risk reward of 1:4/1:9 is not possible.Its reward to risk... Some of his OTM IC's exceed RISK/REWARD of 9:1... Proceed at your own risk
No worries,I had to ask the OP for a breakdown to understand his terminology. I should have mentioned to you it was reward to risk
Nope I try and stick to 1:5 ratio at most .... 1:9 was what I saw when I tried to get SPX and which is why I stayed away Like the below ... 63 DTE around the 10D range each side and it's almost 1:10 I have to move close to the 85% OTM / 13-14D range to get it down to 1:2 / 1:3 range