So a little about me, Data Scientist and man AI has been giving me a hard time careerwise. Forced into a situation to create money from scratch. Took my last $1000 and just invested it (obviously not much) but with 0 experiene i just decided to go all in and then i actually started winning and losing.
I realized Data Science is a version of Quantitative Analysis (arguably the same thing).
Anyway so mathematically according to my Algorithm,
Diagonal Puts (2 leg strategies) are mathematically the superior Options Strategy if:
* Short (Sell to Open) Leg must have a +5 IV edge compared to the Long (Buy to Open) Leg IV
* Ask Spread Width (must be .75 or lower)
* Net Theta/Vega Ratio (must be .5 or better)
**Example:**
https://preview.redd.it/au5c7jmisrcg1.png?width=1270&format=png&auto=webp&s=60b4e52beb0e41e77b46c9ed60a6ef1e16d3f107
According to my Algorithm I have been building this is a mathematically superior setup for risk and potential profitability.