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Scaling Up Small Accounts

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

Today, we discuss different strategies to scale up smaller accounts.

We like to trade iron condors in tastybite accounts because they are cheaper than strangles. Eventually, we will want to scale up our accounts and start deploying more capital. To scale up our account, we can either increase the number of iron condors traded or increase the width of the wings per contract.

Based on our study, widening the wings results in lower P/L volatility. Therefore, upping the risk per trade by widening the wings outperforms increasing the number of contracts traded.

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