Why not make iron condor (like structure) with only call options?
Looks like I have used up all my brain cells on this one and still can figure this shit out…
So I have generally ICs are a combination of put spread and call spreads with objective that the price will be in a range, which uses a bit of margin…
Scenario 1 Traditional IC:
I make traditional IC with 1SD spread and I get 115 at expiry but the collateral ($ 250) is blocked until then.
Scenario 2 Retard IC:
I make IC with calls and it costs me $140 upfront, though I profit only $110 ($5 less than traditional IC also lose $5 more if the planets don't align up) and still use the remaining $110 to lose on other shitty trades…
So my question is why in the world would use traditional IC and not the Retard IC is it just the $5 gap and not the opportunity cost of liquid money..?.
Is it just me or do I need to apply for the Nobel prize in economics for this discovery?
Submitted November 25, 2021 at 09:27PM by bitemenow999
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