A few days ago I posted my strategy and results (in lbs of pennies) in;
[https://www.reddit.com/r/options/comments/1s5n636/comment/odz9pg2/?context=1](https://www.reddit.com/r/options/comments/1s5n636/comment/odz9pg2/?context=1)
In real dollars, the gain is 1,029,735.:
The strategy is to sell 100-point wide ICs for 1.00 to 2.00. Therefore, the risk/reward is very high using conventional ways of analysis.
However, the actual risk reward is less because at any time the portfolio is not exposed to the max loss. This is done through staging.
In stage 1, I will sell 25HTE using one third of BP.
In stage 2, I will sell 0DTE using one-third of BP. (At this time, the stage 1 options present no or low risk.)
In stage 3, I will sell junk using one third of BP. (At this time, only the stage 2 options present any risk. The junks is benign.)
So at any time, the max loss is one-third of the risk capital. The risk reward is lower.