Option R:R vs. probabilities

NexusFi · 2013-09-13T14:23:33-04:00

As to the original question, there's no such thing as a "good" risk vs reward in that there's no edge in option pricing. If/when 'edge' appears, the computers at Goldman Sachs pick it up and it gets traded out of existence. And probabilities are only useful if combined with a time frame - which is usually expiration. So unless you intend to carry your trade to expiration, with no trade management, probability doesn't mean anything. Choose a risk/reward that you're comfortable …

Discussion in Options

Updated September 13, 2013

Option R:R vs. probabilities

September 13th, 2013, 02:23 PM	#31 (permalink)
lrfsdad milwaukee,wi, usa Elite Member Experience: Intermediate Platform: Mobile TWS & mobile TOS. Dough.com Broker: IB, TOS, FXCM Trading: futures and options. looking into forex Posts: 186 since Nov 2012 Thanks Given: 302 Thanks Received: 161	Do you want to have a directional bias when employing this strategy?