The ability to incrementally adjust the risk of a trade makes options trading extremely versatile. The risk of a strangle for example can be defined and turned into an Iron Condor. Risk can then be adjusted in $1 increments.

When we define the risk what are things to keep in mind:

• The range of the POP profile given a delta changes
• How the width of a spread can be adjusted to fit risk preferences
• How changing delta ultimately affects risk

Join the guys in today’s segment where they consider the various ways to incrementally adjust risk.