SG Options Seller Masterclass

Can I take this trade?

Size before strikes. Set the share of your account you are willing to lose on one position, enter the structure, and this works out how many contracts that allows — then checks what the new position does to everything you already have open.

Your risk budget

Account size — the capital you are actually trading

Most you are willing to lose on any one position

A commonly cited ceiling is 1–2%. The right number for you depends on your own circumstances — that is a conversation for a licensed adviser.

Ceiling on total portfolio heat — everything at risk at once

The trade in front of you

Structure

Width between the strikes

Credit received per share

Contracts you were planning to take

What is already open

Total risk across positions you already hold

Add up the max loss on every open position.

Of that, how much points the same way as this trade

Same index, same sector, or simply all bullish.

The arithmetic

Risk budget for one position—

Maximum loss per contract—

Contracts that budget allows—

Suggested opening size—

Risk if you take the size you planned—

Credit collected at that size—

Credit as a share of what you are risking—

Portfolio heat

Already at risk—

After this trade—

Pointing the same direction after this trade—

Worked arithmetic on figures you supply, for education. It is not advice on position sizing, not a recommendation to place any trade, and it cannot know your circumstances. Maximum loss assumes the structure is held to expiry and settles at its worst case; assignment, early exercise, gaps and fees can all make the real outcome worse.