The Kelly Criterion for Trading Options

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Tom and Tony are joined by Jacob Perlman as they discuss how the Kelly Criterion applies to trading options. Jacob explains how much buying power you should allocate to a trade in order to increase your number of occurrences and use your capital most efficiently.

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Deiya Pernas says:

love it. thanks tom/tastytrade. I dont get why there is focus on the amount of trades and making sure we pick independent option trades. To keep it simple shouldn't you just follow the kelly criterion on every options bet accross the course of your career and this will be optimal?

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