Rule of thumb on how much of buying power to use based on VIX:
Out of the buying power allocation, the proportion that should be allocated to defined and undefined risk strategies.
Capital Allocation
Tag: Defined vs Undefined Risk
Position Sizing
Different Variations of Iron Condors and Strangles
Undefined Risk is Less Risky
What??!! Can’t really understand this one. But sounds like Kai is saying that there is a <1% chance of strangle losing an amount that is the same as premium collected. Iron Condors on the other hand, have 4% chance of losing BPR. As a result, portfolio is more volatile if it comprises mainly of defined risk trades. I need to look at this more in depth.
20 Percent Freedom 