Deep otm will not give you an edge. You can backtest it forward test
The loss is usually due to market going against our views
To test, look at the price today for deep otm put and call
As well as price today of itm call and put
Then assuming you have taken 10k of calls or puts see the loss or gains and you’ll notice most loss and gains are same
What I think you need to do is take far dated calls or puts and mostly “in the money” calls or puts as the iv on them is lowest
Either way if your views are wrong, you’ll make a loss.
The best time to make money on options is when market is at very stretched positions. Usually it’s risky to take puts as over long run stocks go up. But if you wait for a right opportunity and markets fall or retrace substantially and you take a far dated itm calls you have lot of things in your favour to walk out atleast at break even if not profitable
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