LOMOB, page-67

Yes, totals were fine but the details were wrong and I tried to edit it but ran out of time.
But in your attempts to correct it, you completely missed the point.

Corrected version below.

You are all missing Zippy's point.
Assume no time premium as is occurring.

LOM: 0.40 x 100,000 = $40,000
LOMOB: 0.10 x 100,000 = $10,000

Now if LOM dropped to 0.30, then calc is:
LOM: 0.30 x 100,000 = $30,000
LOMOB: 0.00 x 100,000 = $0

Loss
LOM: $40,000 to $30,000 is a $10,000 loss.
LOMOB: $10,000 to zero is a $10,000 loss.
So the risk for capital loss is exactly the same for both LOM and LOMOBs per unit.

In reality, it is actually less because a time premium would appear on LOMOBs if LOM heads dropped to 0.30. But if LOM went up in value, you get the same $ profit increase on LOMOB for only a quarter of capital invested due to leverage.