3min chapter

The Trade Busters cover image

03 - Considerations for Trading Defined Risk

The Trade Busters

CHAPTER

Is There a Need to Leverage More on a Spread?

If you're going to double the contract size, then you will make more money even if you're losing about 25% of your premium capture. It's just going to net more overall than a high premium capture on a smaller program. You can leverage if you want to. I've said this over, I've run a number of strategies and I kind of spread the risk around.

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