Options Trading: Profit and Probability Discussion [Part 3]

Options Trading: Profit and Probability Discussion [Part 3]

Posted On June 13, 2019 2:49 pm

If the 2016 election results and market response teach us anything it’s to expect the unexpected and make sure your positions and portfolio can withstand the even the most outlier of events.

In the [first part] of this series we looked out how to properly measure risk and return for before even stepping in the batter’s box.  In [the second part] walked through the value creating the right risk/reward to make sure you’re swinging at fat pitches.

In this installment, to further…

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.