Risk Management

Learn how proper position sizing reduces risk, maximizes returns, and helps traders survive market volatility for long-term success.

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Why Position Sizing Is the Most Overlooked Edge in Trading

Position sizing is the most overlooked edge in options trading. The math on consecutive losses, the 2 percent rule, and three rules for every trade.

You Should Study Risk Taking, Not Risk Management

Most traders spend all their energy on what to do after the risk has been taken. The real skill is in how you take risk in the first place. Six gates that determine 80% of the outcome before the trade exists.

Andrew Crowder

Portfolio Beta Weighting: How to Manage Your Entire Options Portfolio as a Single Position

Target beta-weighted delta at 10-30% notional. Beta-weighted theta at 0.1-0.2% per day. Weekly delta check in 2 minutes. Stress test: what a 5% SPY drop costs your portfolio. Rebalancing triggers. The complete framework.

Andrew Crowder

Why Boredom Is the Premium Seller's Greatest Asset

The best investors are comfortable being bored. The law of large numbers requires 200-500 trades to manifest. Sequence risk is what destroys traders before the math catches up. Five structural protections that let the edge work.

Andrew Crowder

How to Build an Options Portfolio That Can Take a Hit

Five pillars that keep premium sellers in the game: position sizing at 2-5%, uncorrelated positions across 8-12 underlyings, a permanent 20-30% cash reserve, strategy diversification, and a written drawdown plan with pre-committed actions at every level.

Andrew Crowder

Buy Your Umbrella Before the Storm: Why Smart Traders Purchase Volatility Protection When It's Cheap

Academic research proves VIX is a superior hedge that costs 3x less when bought during calm markets. Three practical methods for systematic volatility protection with a 1-2% annual budget.

Andrew Crowder

How to Size Credit Spread Positions: Max Loss, Account Risk, and the 2% Rule

The exact 5-step formula for sizing credit spreads by max loss. Covers the 2% rule, 3-5% for experienced traders, spread width comparisons, and the 20-25% aggregate portfolio cap.

Andrew Crowder

The Emotional Cycle of an Options Trade: Fear, Greed, and Everything Between

Every options trade follows a predictable emotional arc. Learn the 6 phases, why premium sellers are especially vulnerable, the real cost of emotional decisions, and 5 circuit breakers that keep emotion out of the trade.

Andrew Crowder

The Holy Grail of Trading: Low-Risk Ideas

The real holy grail of trading isn't one perfect setup. It's a portfolio of small, defined-risk, positive-expectancy trades where no single outcome can damage your account. Here's the framework.

Law of Large Numbers in Options Trading: Your Statistical Edge

How the Law of Large Numbers powers probability-based options trading with 70-85% win rates. The math, the strategy, and a real SPY bear call spread example.

Position Sizing: Van Tharp's Golden Rule

The one variable that separates traders who survive from traders who blow up

Andrew Crowder

Expectancy: The Single Number That Predicts

Learn why win rate is a vanity metric and how to calculate expectancy, the one number that reveals whether your options trading strategy will actually make money.