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The Skinny on Options: Abstract Applications - August 11, 2025 - Calculating the Risk of Going to Zero

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Manage episode 499553626 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
In today's Skinny on Options: Abstract Applications, Dr. Jim opens up a discussion centered on risk management in trading, particularly the "risk of ruin" in both defined and undefined risk strategies. With Tom and Tony, Dr. Jim then delves into calculations that illustrate how position sizing affects the probability of significant losses, emphasizing the importance of staying small in trade sizes. They also highlight the differences between trading indices versus individual stocks, noting that individual equities tend to have a higher risk of extreme moves.
  continue reading

1724 episodes

Artwork
iconShare
 
Manage episode 499553626 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
In today's Skinny on Options: Abstract Applications, Dr. Jim opens up a discussion centered on risk management in trading, particularly the "risk of ruin" in both defined and undefined risk strategies. With Tom and Tony, Dr. Jim then delves into calculations that illustrate how position sizing affects the probability of significant losses, emphasizing the importance of staying small in trade sizes. They also highlight the differences between trading indices versus individual stocks, noting that individual equities tend to have a higher risk of extreme moves.
  continue reading

1724 episodes

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