Benefits of Risk-Adjusted Returns: Portfolio Growth Through Protection of Assets

In the world of hedge funds and financial advising, the focus often shifts to “risk-adjusted” ROI. At SJ Options, we embrace this philosophy wholeheartedly. Consider this: if you could risk 5% to make 5%, wouldn’t that be far preferable to risking 75% to achieve the same return?

Options trading, with its array of strategies, empowers traders to choose the level of risk they’re comfortable with—a concept known as risk-adjusted returns.

In my humble opinion, asset protection should be the number one priority. By prioritizing safety and mitigating investment risk, traders stand to realize greater returns over the long term, especially when employing strategies with high probabilities of success.

Failing to ensure safety in options trading can lead to devastating outcomes, including the loss of your entire account or even worse, a negative balance.

How to Reduce Risk:

1. Implement Safer Trade Structures
2. Avoid Overleveraging
3. Harness the Power of Higher Order Greeks
4. Understand Volatility and Capture Skew
5. Develop a Deep Understanding of How Options Behave

These principles lie at the core of SJ Options’ approach. Mastering them takes years of dedicated practice and study, but it’s the key to investing while minimizing risk to rock-bottom levels.