Episode 12 of 'Saxo Options Talk': Navigating risk: defined vs undefined strategies Episode 12 of 'Saxo Options Talk': Navigating risk: defined vs undefined strategies Episode 12 of 'Saxo Options Talk': Navigating risk: defined vs undefined strategies

Episode 12 of 'Saxo Options Talk': Navigating risk: defined vs undefined strategies

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  Episode 12 of 'Saxo Options Talk' brings to the forefront the pivotal concepts of defined and undefined risk strategies in options trading. Koen Hoorelbeke and Peter Siks dissect these crucial strategies, laying out their potential impacts on a trader’s portfolio.


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.

Introducing Episode 12 - Navigating Risk: Defined vs Undefined Strategies

In "Navigating Risk: Defined vs Undefined Strategies," Koen and Peter demystify the distinctions between defined and undefined risk strategies. This episode is a deep dive into understanding these fundamental options strategies and how they align with different trader profiles, particularly those new to the options market.

Understanding Risk Strategies

  • Risk Strategies Explained: Learn the difference between defined and undefined risk strategies with real examples, and explore which might be suitable for novice users.
  • Straddles and Strangles: Examine strategies like straddles, which can be both defined and undefined based on their long or short positions, and strangles, typically associated with undefined risk.

Transforming Risk

  • From Undefined to Defined: Delve into how an undefined risk strategy like a strangle can be converted into a defined one such as an iron condor.
  • Weighing the Odds: Consider the advantages and disadvantages of both approaches, including how market conditions like high VIX levels can influence the viability of undefined risk strategies.

The Art of Position Sizing

  • Size Matters: The hosts bring an interesting analogy with gaming to emphasize the importance of sizing in risk management, illustrating how this can be the difference between success and failure in trading strategies.

Preparing for the Next Step

  • Looking Ahead: Get a preview of the upcoming episode focusing on the short strangle, both uncovered and covered versions, providing listeners with a teaser of more advanced strategies to come.

Why Listen to Episode 12?

  • Whether you are testing the waters of options trading or looking to hone your risk management techniques, Episode 12 is an invaluable guide to mastering the balance between potential profits and risks.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.

Conclusion:

Episode 12 of 'Saxo Options Talk' is a crucial listen for traders seeking clarity on defined and undefined risk strategies. Koen and Peter’s expert insights offer a comprehensive understanding of how to navigate these strategies, making informed decisions to align with your trading objectives. Tune in to elevate your options trading knowledge and prepare for the evolving market conditions.


For continuous insights and updates on market/options strategies, interact with me/follow my social media account on Threads.


Previous episodes of the "Saxo Options Talk" podcast

Previous "Volatility reports": 

Previous "Investing with options" articles: 

Previous "What are your options" articles: 

Related articles:


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website. 

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