Calling All Fans!

Submit your video questions to be answered LIVE on Friday morning!

Submit

tasty BITES

Weekdays 8:00 – 8:20a CT

Efficient Capital Allocation

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.

Trading small accounts can be challenging because we may be tempted to allocate a lot of capital into any one position. However, is there a point where allocating too much becomes dangerous?

Study
  • SPY, 45 DTE, since 2005

  • Sold 25 delta iron condors with $20 wide wings

  • Allocated 20%-80% of a $10,000 account and looked at performance.

We found that before 2008, the largest allocation performed the best. However, after the account was diminished after the downturn, long term performance lagged. Roughly 40% of capital allocated performed the best over the long term.

Get Tom and Tony's take on the results! Check out the segment!

tasty BITES More installments

See All »

Latest tastytrade Videos As of October 17

Most Shared From the last 30 days