tasty BITES

Weekdays 8:00 – 8:20a CT

Downsizing

tasty BITES

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

To improve capital efficiency, we can define the risk of our trades by adding wings of different widths and different underlyings in different markets accordingly.

According to the result of our study, adding wings can reduce our BPR and max loss, thus reducing risk and increase our capital efficiency.

And the wider the wings, the higher the risk. For example, for iron condors, a defined risk strategy, the BPR and max loss is higher with wider wings, which means the risk of iron condor increases with its width. And we can also manage risk by adding wings on more volatile underlyings.

Tune in as Tom and Tony explain!

tasty BITES More installments

See All »

Latest tastytrade Videos As of June 19

Most Shared From the last 30 days