The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re getting into options trading golden rule number two which is high trade count. Today's rule builds on top of yesterday’s rule which is small positions. Now, we know that small positions are critically important to our success and once we understand that small positions are important, what we also have to understand is that a high trade count or high-frequency of trading is also critical to our success. Again, let's use a very simple example and use it on the broad ends of the spectrum, really high trade count possibility and a really low trade count possibility and walk through these different scenarios. Let's assume that we have small position sizes and we’re trading under 5% risk per ticker symbol, but on one end of the spectrum, we only make two trades per year. Let's say we just for whatever reason, don't have an opportunity, don't feel like we make the time to increase the trade frequency of our strat