Options Jive - May 4, 2021 - Managed vs Defined

published 1 week ago by tastytrade, Inc.

tastytraders generally manage trades at 21 days to expiration. This helps to limit exposure to the profit/loss swings that can occur close to expiration and allows for buying power to be redeployed.  Defined risk trades also have less extreme profit/loss outcomes and generally require less buying power. Today, Tom and Tony look at the data to contrast the effects of these approaches.

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