If I have an option that has a net credit and results in a positive expected value (based on my own estimates of volatility), how do I calculate an ROI in order to compare with a net debit credit options?
- Option 1: Net Credit +5 EV +1
- Option 2: Net Debit -1 EV +10
- Option 3: Net Credit +5 EV -1
Is there another metric that is better equipped to make the comparison between these? Is there information that is missing that is needed to make this comparison?