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After the market moves I hedge or 'lay' the bet back to the acceptable risk in accordance with the 'Kelly Critereon', the formula based on risk, odds and edge, that is commonly agreed to be the optimum strategy for games of chance. You may have purchased eBooks and have probably watched hundreds of videos boasting massive trading profits.
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Long Term Capital Management used a volatility arbitrage approach. Each option also has a predetermined expiry dateafter which it ceases to exist.
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