Options
10 Positions Can Still Be ONE Big Trade
Date: 2026-11-12 12:45:09
Different tickers do not automatically mean different risk.
That is where correlation matters.
Correlation describes how closely two investments tend to move together.
SPY and QQQ are different ETFs, but they can still move similarly during major market moves.
Apple, Microsoft, and Nvidia are different companies, but they may also react to the same broader technology or market environment.
So if you have bullish positions across several of those names, your portfolio may be less diversified than it looks.
10 positions do not automatically mean 10 independent risks.
Sometimes it is one directional view broken into smaller pieces.
That is why portfolio management means looking beyond the ticker count.
Educational content only. Options involve risk.
#OptionsTrading #Correlation #PortfolioRisk #Diversification #RiskManagement #OptionAlpha
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
