Jhankrish Website THE WORLD OF FINANCIAL INDEPENDENCE

Rollover

Roll over of Capital is more important in Option selling portfolio, which depends up on :

Capital size of portfolio : As Capital Size increase, it gives luxury to,Diversification,Catch more opportunities,Defend your existing trade.Bigger size portfolios have higher Rollover in compare to Small size Portfolios
Market trend :Trending market has higher Rollover in compare to sideways market,Uptrend having higher Rollover in compare to Downtrend,Momentum is directly proportional to Rollover.
Position size of trade :When you keep your position size small,You get more number of opportunities to deploy your capital,It automatically reduce your Risk exposure.Small position size increase rate of Roll over in compare to Large position size.Finally, Large size portfolio with uptrend with high momentum with Small position size having highest Rollover.As Rollover increase, it increase your overall return of your portfolio.

Save my name, email, and website for later use.