Best Practices

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Number of Occurrences

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Should we expect the average P/L of $67 per trade for a 16 delta strangle in SPY to hold true for our own accounts?

The answer is yes and no. The more times you trade, the closer you get to the true values of win rate, standard deviation, and average P/L. However, having 10 or 20 trades will not get you there.

Increasing number of occurrences is the only way to ensure that your account will have a stable metrics over the long run.

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