Get Option Alpha
100% FREE
by connecting your TradeStation or Tradier brokerage account!
Learn more
.
📣 Spring Sale Ends TONIGHT!
Upgrade to Pro 72% OFF 👉
Learn more
.
📣 75% OFF Early Bird Sale!
Huge 'Spring Sale' discount this week only 👉
Learn more
.
Home
Resources
Bots 101
Integrations
Education
Courses
Strategies
Handbook
Podcast
Blog
Pricing
Brokers
FAQ
Cyber Monday
SAVE 72%
Start Free Trial
Login
Login
Start Free Trial
Home
Resources
Probability Theory
Tag:
Probability Theory
Probability theory helps traders quantify otherwise random variables and distributions for games of chance, and is a fundamental concept in understanding options trading.
optionalpha.com/tags/probability-theory
Articles
Videos
Lessons
Podcasts
No articles matching this tag.
12:02
Poker vs Options Trading + using Reward/Risk to trade with an edge
Discover how to find an edge in options trading using probabilities and how to calculate the minimum reward/risk when evaluating trading opportunities.
Jack Slocum
October 17, 2024
•
12 min video
4:45
Finding Great (Small) Option Trades
Learn how to use Option Alpha's Trade Ideas to filter for high probability trading opportunities with low risk, perfect for traders with smaller accounts.
Kirk Du Plessis
October 17, 2024
•
4 min video
No lessons matching this tag.
240
•
Dec 22, 2025
Thinking In Probabilities & Risk
55 mins
0dte
Adjustments
ADX
Allocation
Allocation Limits
Alpha
Assignment
Audiobook
Automated Trading
Automations
Autotrading
Backtesting
Bear Call Spread
Bid-Ask Spread
Black-Scholes Model
Bot Buttons
Bot Level Input
Bot Switches
Bot Tags
Brokers
Bull Put Spread
Call Options
Case Studies
CCI
Cloning Bots
Close Position
Correlations
Covered Calls
Custom Inputs
Decision Actions
Decision Recipes
Dividends
Earnings
Education Resource
EMA
Event Automations
Exercise
Exiting Trades
Exit Options
Expected Value
Expiration
Extrinsic Value
FOMC
Futures
Gamma
Global Settings
Grouping Decisions
Hedging
Historical Volatility
Implied Volatility
Index Options
Interview
Intrinsic Value
Investor Sentiment
Iron Butterfly
Iron Condor
IV Rank
Long Call
Long Call Spread
Long Put
Long Put Spread
Long Stock
Loop Positions
Loop Symbols
MACD
Margin
Margin Requirements
Momentum
Moneyness
Monitor Automations
Moving Averages
Notifications
Open Interest
Open Position
Option Contracts
Options
Options Delta
Options Greeks
Options Leverage
Options Theta
Option Style
Options Vega
Option Time Value
Payoff Diagram
Portfolio Management
Position Limits
Position Tags
Price Levels
Profit Targets
Protective Puts
Put-Call Parity
Put Options
Rate of Return
Repeater Action
Research
Risk Management
RSI
Scanner Automations
Scheduled Events
Short Calls
Take the guesswork out of options trading
Find opportunities. Backtest ideas. Automate strategies.
Learn more
Start Free Trial
.png){kind=avatar}
'%3e%3cg id='Final-Copy-2_2_' transform='translate(1275.000000, 200.000000)'%3e%3cpath class='st0' d='M7.4,12.8h6.8l3.1-11.6H7.4C4.2,1.2,1.6,3.8,1.6,7S4.2,12.8,7.4,12.8z'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3cg id='final---dec.11-2020'%3e%3cg id='_x30_208-our-toggle' transform='translate(-1275.000000, -200.000000)'%3e%3cg id='Final-Copy-2' transform='translate(1275.000000, 200.000000)'%3e%3cpath class='st1' d='M22.6,0H7.4c-3.9,0-7,3.1-7,7s3.1,7,7,7h15.2c3.9,0,7-3.1,7-7S26.4,0,22.6,0z M1.6,7c0-3.2,2.6-5.8,5.8-5.8 h9.9l-3.1,11.6H7.4C4.2,12.8,1.6,10.2,1.6,7z'/%3e%3cpath id='x' class='st2' d='M24.6,4c0.2,0.2,0.2,0.6,0,0.8l0,0L22.5,7l2.2,2.2c0.2,0.2,0.2,0.6,0,0.8c-0.2,0.2-0.6,0.2-0.8,0 l0,0l-2.2-2.2L19.5,10c-0.2,0.2-0.6,0.2-0.8,0c-0.2-0.2-0.2-0.6,0-0.8l0,0L20.8,7l-2.2-2.2c-0.2-0.2-0.2-0.6,0-0.8 c0.2-0.2,0.6-0.2,0.8,0l0,0l2.2,2.2L23.8,4C24,3.8,24.4,3.8,24.6,4z'/%3e%3cpath id='y' class='st3' d='M12.7,4.1c0.2,0.2,0.3,0.6,0.1,0.8l0,0L8.6,9.8C8.5,9.9,8.4,10,8.3,10c-0.2,0.1-0.5,0.1-0.7-0.1l0,0 L5.4,7.7c-0.2-0.2-0.2-0.6,0-0.8c0.2-0.2,0.6-0.2,0.8,0l0,0L8,8.6l3.8-4.5C12,3.9,12.4,3.9,12.7,4.1z'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
Your Privacy Choices