3min chapter

The Trade Busters cover image

13 - Premium Capture Rate

The Trade Busters

CHAPTER

How to Measure a Premium Capture Rate

A premium capture rate is a way of expressing expectancy. It doesn't really apply to debo strategies likeike long calendars or long iron condors, for example. With debit strategies, you can still have an expectancy. After you'd run enough trades, you basi con forget how much dollars you expected for trade. But in this case, when you're talking specifically about premium selling strategies, the premium capture rate also happens to measure the expectancy,. In terms of a % or a dollar. And so is countable coincidence theyr.

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