From Theory To Practice - February 18, 2021 - Trade Adjustments: Balancing Risk and Return
Every move that we make as tastytraders is ultimately to accomplish one of two things: minimize risk or maximize return. This dichotomy is always present with our individual positions or our total portfolio, and depending on whether we have a defined-risk strategy or an undefined-risk strategy can change which one of these objectives takes priority.
With our TLT Call Diagonal Spread that is just not cooperating, we see a real-time example of how to balance minimizing risk with maximizing return.