[COI Questions: 2] What would cause a loss with your trading strategy?

[JR]

When you enter our trade, your broker will charge your margin. That
margin value represents real risk. Even though we have not had a loss,
that does not mean our strategy is risk free. However, our position is
actively moving in reaction to market movement. Therefore, our
position is not just a sitting duck waiting for the market to do
something in particular to hurt us. To produce a loss the market would
have to move in some very specific ways, a number of times. This is
improbable and would be contrary to normal market behavior. The point
is that, compared to many of the other options trading approaches, our
strategy provides the most improbable chance of loss. Not impossible
but more improbable. Until you actually learn the strategy, this may
not make complete sense to you. However, once you see it in action,
you will completely understand your risk and you will have the tools
to manage that risk.

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