R Multiple for Credit Spreads
Stock Market Options Trading
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Option Trading - Is There a Higher R Multiple?
If you are going to be taking profits at 50 %, it's actually going to change the r multiple of the trade. So for example, if we bought the spread back for a hundred dollars, now we've actually reduced our profit. In the next episode, we're going to take that r multiple number and then factor that into an account balance with a wind rate and loss rate. And that way, that's going to help us position size properly.
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