There is always a tradeoff between return on capital and. How do we boost ROC without lowering our POP too much? Tom and Tony go over some of the best strategies with a high ROC in today’s segment.
For tastyBite traders, shortcan eat up a lot of buying power. What might be some alternative strategies which help to maximize our return on capital while still keeping a high POP? One way we can increase ROC and reduce margin requirements is by defining the risk. For a short put this would mean buying an OTM put. compared to other trades tend to have the highest ROC while still maintaining a high POP.
Small increases in ROC each year may not seem like much, but compounded over the life of a trading account, it can have a major impact on capital. Tune in to hear Tom and Tony discuss which strategies give you the highest bang for your buck!