As traders, we are constantly analyzing trade-offs and trying to make the best decisions we can. Today, Tom and Tony look at some of these trade-offs using theas an example!
We often think of the common trade off of "risk to reward," but what are some of the other tradeoffs we might consider when making trading decisions? Some common ones we look at are:
- Premium vs.
- Target vs. Win Ratio
- DTE vs. Daily P/L
- Protection vs. P/L and POP
There are many ways to put on a Strangle and each decision we make will have different pros and cons. Understanding tradeoffs between various set ups can help you customize your trading methodology to better fit your goals. Tune in to hear Tom and Tony look at some of these tradeoffs!