The Skinny on Options: Abstract Applications - October 26, 2020 - Number of Occurrences: How Many?


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Oct 26 2020 22 mins   6
As out-of-the-money premium selling tastytraders, we always have the [probabilities skewed in our favor.](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/overcoming-the-odds-11-30-2017 ) And over time with enough occurrences, we have a high probability of being successful with our trading. Given that, then, a natural question to ask is, [‘how many occurrences](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/portfolio-tactics-building-blocks-number-of-occurrences-part-one-11-20-2019 ) do I need before my results will begin to smooth out?’ To find the answer, we turn to population means and sample means within the Law of Large Numbers.