European Roulette has a house edge of 2.7%. I think in the UK, gambling winnings don’t get taxed. I think in the US, you wouldn’t tax each win, but just your total winnings.
I’m seeing bid-ask spreads of about 10% on SPX call options. Naïvely, perhaps that means the “edge” is about 5% for someone looking to gamble. I think that the implied edge is much worse for further out-of-the-money options, but if you chain in-the-money options you’d have to pay tax on each win (assuming you won).
European Roulette has a house edge of 2.7%. I think in the UK, gambling winnings don’t get taxed. I think in the US, you wouldn’t tax each win, but just your total winnings.
If you go the casino route, craps is slightly better. Don’t pass is 1.40% house edge, and they let you take (or lay, for don’t pass) “free odds” on a point, which is 0% (pays true odds of winning), getting it down below a percent. Taxes may not matter if you can deduct the full charitable contribution.
Note that if you had a perfect 50% even-money bet, you’d have to win 10 times to turn your $1000 into $1.024M. 0.5 ^ 10 = 0.000977, so you’ve got almost a tenth of a percent of winning.
Two options I came up with:
European Roulette has a house edge of 2.7%. I think in the UK, gambling winnings don’t get taxed. I think in the US, you wouldn’t tax each win, but just your total winnings.
I’m seeing bid-ask spreads of about 10% on SPX call options. Naïvely, perhaps that means the “edge” is about 5% for someone looking to gamble. I think that the implied edge is much worse for further out-of-the-money options, but if you chain in-the-money options you’d have to pay tax on each win (assuming you won).
If you go the casino route, craps is slightly better. Don’t pass is 1.40% house edge, and they let you take (or lay, for don’t pass) “free odds” on a point, which is 0% (pays true odds of winning), getting it down below a percent. Taxes may not matter if you can deduct the full charitable contribution.
Note that if you had a perfect 50% even-money bet, you’d have to win 10 times to turn your $1000 into $1.024M. 0.5 ^ 10 = 0.000977, so you’ve got almost a tenth of a percent of winning.