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

Hey everyone, Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be answering the question – “Which option strategy has the highest returns?” Before we actually go into this topic, I think it's important that we talk about the differentiation between returns and volatility in your account. This is something I yet to hear this often talked about and this difference between going after the highest, highest return versus something that has basically low volatility or stability in the portfolio. Imagine two different things before we even start this conversation. Imagine that you have a portfolio curve, so your bank account goes up and down every single day by $5,000. Now, if I just said that to you right now, some of you would think, “Holy cow! That’s like all of my account. I could either lose or double my account every single day.” Others of you may have said, “Well, that’s not that much. I’ve got a larger account. $5,000 up or down is not a lot of volatility in my acc