From Theory To Practice

Monday - Friday | 1:00 - 1:20p CT

Undefined Risk Position Sizing

From Theory To Practice

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

One of our core philosophies is to “trade small, trade often”. While this phrase seems simple to say and appears to be easy to understand, the practical application of its tenets in your portfolio might not be obvious. Just a couple days ago, we covered position sizing with defined risk trades, and recently, we showed how the Central Limit Theorem gives us the proper context for how many observations might be necessary to achieve our expected results. Today’s talk completes the puzzle with a discussion around how to size our undefined risk positions. Taken collectively, these few segments give us a practical application of how to trade small and trade often.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of October 20

Most Shared From the last 30 days