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I have a strategy based only on option instruments and I am trying to measure its performance to optimize some parameters. But how does one measure the performance of such strategies?

For Sharpe ratio calculation how do we calculate the return rates? For example, on one day the strategy is to buy and sell some options and its zero cost up front, the strategy made some PnL. What should be the return rate for this period?

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It's not a zero cost as you need to pay the initial margin and should have some extra cash in case you go below maintenance margin. You need some cash to trade, pick a sensible amount for an initial figure and measure against that.

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