Option Trading Strategy - What is Probability of Profit (POP)?

http://www.sjadvisor.com and http://www.sjoptions.com - Probability of Profit (POP) is the common, traditional way to calculate a probability of an options trade. This method of calculating probability can be off due to its shortfalls. 1. POP assumes the distribution model is perfectly centered. It is not. 2. POP assumed volatility will not change. It will. 3. POP includes and unacceptable amount of risk within the probability zone. Be careful. 4. POP assumes no large moves will occur in a single day. It happens all the time. Attend our free live events: http://sjoptions.com/events More free options trading videos: http://sjoptions.com/tour/free-options-videos/ Follow Us: http://www.facebook.com/SanJoseOptions http://www.linkedin.com/company/san-jose-options http://www.youtube.com/user/sjoptions

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