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

Hey everyone, Kirk here again at Option Alpha and welcome back to the daily call. On today’s daily call, I want to talk about why we should balance and Beta-weight our portfolio to the S&P. I use the S&P or particularly, SPY which is the small S&P 500 ETF or I say it’s small, but it’s not as big as the SPX. But I use the markets as a benchmark for what I do with my portfolio because I feel like having one guidepost to work off of is much more efficient and offers a lot clearer of discretion when you’re actually getting into new trades or adjusting existing trades. Here’s what I’m talking about. Most people, what they do when they start going into options trading is they worry about every single trade like it’s an independent piece, like this trade then that trade then that trade. While it’s important that you worry about every single trade, what’s more important is the overall portfolio. For me, I don’t care if I lose on trades 1 to 5 if I make money on 2, 4, 6, 7, 8, 9, 10. It doesn’t matter to m