The Friction of Defined-Risk Strategies

<p>Defined-Risk strategies are great strategies because they allow us to actively engage in the markets and trade with high probabilities, all while limiting our risk. Still, it's important to recognize that by covering any short options with a corresponding long option, and defining our risk, there is a certain amount of friction that is introduced into the strategy. This means that beneficial metrics like positive Theta or negative Vega are reduced as a result of those long legs.</p>