Get Option Alpha
100% FREE
by simply connecting your TradeStation or Tradier Brokerage account!
Learn more
.
📣 Alpha One Closes Tonight!
This is your last chance to join! 👉
Learn more
.
Home
Resources
Bots 101
Workshops
Integrations
Templates
Education
Courses
Strategies
Handbook
Podcast
Blog
Pricing
Brokers
FAQ
Help
Start Free Trial
Login
Login
Start Free Trial
Home
Resources
Risk Management
Tag:
Risk Management
Risk management is a key component of long-term trading success. Learn different risk management tools and how to apply them to your investing.
optionalpha.com/tags/risk-management
Articles
Videos
Lessons
Podcasts
Platform Updates
Beta Weighting Now Available in Trade Ideas
Trade Ideas now includes sortable columns for a position's beta and delta, as well as a beta weight metric that shows how the position will impact your portfolio.
Kirk Du Plessis
Dec 18, 2023
•
5 min video
Platform Updates
Manage Your Positions with Return on Risk
Intelligently manage your positions with this new decision recipe that evaluates return on risk to exit positions at defined targets.
Steve Henry
Feb 25, 2022
•
2 min read
Platform Updates
We Just Introduced Bot Warnings for Smoother Autotrading
Bot errors are divided into two categories to help you identify soft and fatal errors and troubleshoot their impact on your portfolio.
Steve Henry
Dec 15, 2021
•
2 min read
Strategic Thinking
Portfolio Hedging Strategy with VIX Options
See how this VIX hedging strategy performed during the Pandemic Crash and learn how portfolio hedging can protect against black swan events.
Kirk Du Plessis
Oct 13, 2021
•
20 min read
Bot Inspiration
How to Add a Global VIX Filter to the Beginning of an Automation
Let your bot scan the market for high volatility before entering new positions. Add a global VIX filter to any automation to quickly check if market volatility is above a defined level.
Kirk Du Plessis
Apr 5, 2021
•
7 min video
Strategic Thinking
Deep-in-the-Money ETF Options Strategy
Check out this deep-in-the-money ETF options trading strategy.
Kirk Du Plessis
Apr 2, 2021
•
3 min read
Best Practices
10 Reasons Why Options Trading Liquidity is Vital
Option liquidity is one of the most important factors to weigh when looking for new trading opportunities. Here is a detailed list of why option liquidity is vital to your trading.
Kirk Du Plessis
Apr 2, 2021
•
3 min read
Strategic Thinking
When to Hold a Position Before You Cut Losses
When should you hold a position and when should you cut losses? Learn to control your emotions and exit trades before they become big losers that blow up your account.
Kirk Du Plessis
Apr 2, 2021
•
3 min read
Strategic Thinking
Figure Out How Many Options Contracts to Trade
It's fairly easy to blow up your trading account. Too often, traders (both advanced and beginner) allocate way too much to a single trade. Here is a simple formula to determine how many options contracts you should trade.
Kirk Du Plessis
Apr 2, 2021
•
2 min read
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
12:24
Running a Professional Options Trading Business
Your options trading should be treated as a business. Here are some tips that have worked for me in my 10+ years of experience.
Kirk Du Plessis
Advanced Track
•
13 min video
14:49
Rolling Options Trades for Duration & Premium
Rolling options trades for a premium extends the duration of a trade and increases the chance of success, without adding additional risk.
Kirk Du Plessis
Advanced Track
•
15 min video
13:58
Applying Smarter Stop Loss Orders
Stop loss orders aren't always the best tool when trading risk-defined option strategies. Learn how to apply smarter stop loss orders using probabilities.
Kirk Du Plessis
Advanced Track
•
14 min video
32:28
Complete Guide to Adjusting Credit Spreads, Iron Condors & Calendars
This video is your complete guide to adjusting risk-defined strategies, such as credit spreads, iron condors, and calendar spreads.
Kirk Du Plessis
Advanced Track
•
33 min video
41:02
Complete Guide to Adjusting Straddles & Strangles
This video is your complete guide to adjusting strategies with undefined risk, such as short straddles and short strangles.
Kirk Du Plessis
Advanced Track
•
41 min video
28:42
Knowing when to Adjust an Options Trade or Not
Learn to identify when you should and shouldn't adjust an options trade and how to make the decision objectively.
Kirk Du Plessis
Advanced Track
•
29 min video
16:08
How to Avoid "Black Swan" Events
Black swan events are economic anomalies that can neither be predicted nor avoided, but their rare occurrences can be properly planned for to mitigate the effects.
Kirk Du Plessis
Advanced Track
•
16 min video
14:51
7 Step Option Trade Entry Checklist
Use Option Alpha's 7 step option trade entry checklist to filter and scan for new trading opportunities.
Kirk Du Plessis
Intermediate Track
•
15 min video
24:05
Portfolio Balance & Beta-Weighting
Portfolio balance and beta-weighting are key concepts if you truly want to build an options portfolio that consistently delivers income regardless of the overall market direction.
Kirk Du Plessis
Intermediate Track
•
24 min video
25:44
Trade Size & Capital Reserves
Options trading is just a game of numbers and probabilities. Responsible trade size and available cash reserves give you the best chance at success over a long period of time.
Kirk Du Plessis
Intermediate Track
•
26 min video
16:46
Fearless, Confident Options Trading
Becoming a fearless, confident options trader comes down to a simple understanding of what you can and can't control in the markets.
Kirk Du Plessis
Intermediate Track
•
17 min video
37:00
How to Generate Consistent Income Trading Options
Here is a straightforward, 5-step process teaching you how to consistently generate income trading options.
Kirk Du Plessis
Beginner Track
•
37 min video
Show #228
•
Apr 26, 2023
Price Recovery Analysis - How Long Does It Take To Get Back To Even?
34 mins
Show #212
•
Feb 25, 2022
How Smart Traders Allocate Capital Efficiently Inside Their Bots
54 mins
Show #196
•
Oct 19, 2020
Hedging Short Naked Puts
44 mins
Show #193
•
Oct 9, 2020
An Automated Way to Start VIX Hedging
46 mins
Show #178
•
May 9, 2020
Box Spread Basics for Options Traders
44 mins
Show #158
•
Jun 21, 2019
What Should We Do About this Losing Option Trade? First, Trust the Process
44 mins
Show #139
•
Aug 15, 2018
The 4 “Not-So-Obvious” Ways to Avoid Blowing Up Your Trading Account
34 mins
Show #132
•
May 28, 2018
Can’t Trade Unlimited Risk Option Strategies? Here’s 4 Great Alternative Trades
21 mins
Show #109
•
Nov 7, 2017
Say Good-Bye to Unlimited Risk Option Strategies Forever
25 mins
0dte
ADX
Adjustments
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
CCI
Call Options
Case Studies
Cloning Bots
Close Position
Correlations
Covered Calls
Custom Inputs
Decision Actions
Decision Recipes
Dividends
EMA
Earnings
Education Resource
Event Automations
Exercise
Exit Options
Exiting Trades
Expected Value
Expiration
Extrinsic Value
FOMC
Futures
Global Settings
Grouping Decisions
Hedging
Historical Volatility
IV Rank
Implied Volatility
Index Options
Interview
Intrinsic Value
Investor Sentiment
Iron Butterfly
Iron Condor
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
Option Style
Option Time Value
Options
Options Delta
Options Greeks
Options Leverage
Options Theta
Options Vega
Payoff Diagram
Portfolio Management
Position Limits
Position Tags
Price Levels
Probability Theory
Profit Targets
Protective Puts
Put Options
Put-Call Parity
RSI
Rate of Return
Repeater Action
Research
SMA
SPX
Scanner Automations
Scheduled Events
Trade with Conviction
Find an edge backtesting 0DTE and next day strategies using 1 minute data then leverage automation to execute your strategy better than humanly possible.
Learn more
Try It for Free