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Strategies for IRAHow Probability of Profit Relates to Risk | Sep 20, 2017
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    Strategies for IRAHow Probability of Profit Relates to RiskSep 20, 2017

    IRA traders utilize a lot of defined-risk strategies in their options trading (no news here). One of the interesting attributes of defined-risk trades is that their Probability of Profit (POP) and Risk are often a function of each other. That is, when we take a certain strategy and try to increase the POP, this increase will usually come at the expense of increased risk in the trade.

    Tom and Tony take this relationship and try their best to flesh out what it looks like in trading via the following strategies:

    The guys find this push and pull between POP and risk play out in numerous examples across these strategies given real trades in the current S&P 500 options market. Check out what the guys have to say about this in the segment above.

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