When incorporating high probabilities in an options trading, the losers on average are greater than the winners. With this in mind, tastytrade's research team examines the "Loss to Premium Ratio" and what it has looked like historically.Study
- 1 SD Strangles
- 2005 - 2019
- 45 Days-to-Expiration
- Recorded losing occurrences only
- Recorded the Loss to Premium Ratio
The worst Loss to Premium Ratio occurrences happened in 2008, 2011, and 2018. But how long did it take to recover simply by using a strangle? Tune in to find out!