Naked options can consume a high amount of buying power (BPR). In today segment, the guys take a look at some strategies that can reduce BPR and increase our return on capital (ROC).
Digging a little deeper they start off with the trade off between return on capital and probability of profit (POP).
With this in mind what are some ways we can keep our POP high while maximizing ROC?
One way is to define the risk of a trade. This increases ROC and buying power also decreases. Regardless of the size of your account, this is a segment you do not want to miss.