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Options · Building an options strategy · lesson 8 of 9 · 6 min read · David Alexander

The assembled options test

the options test checklist

The module's defences as one pass: outcome bucketing instead of expectancy, full costs charged per leg with decay run over the hold, the volatility regime recorded, max-loss sizing as traded, the tails weighted by mechanism and implied distribution, and defined risk only. Where crypto tests failed by believing a thin-regime history, options tests fail by summarising a non-linear payoff into a linear average - and the assembled test is built to refuse that summary.

This lesson is part of the advanced modules.

Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.