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Diversification

Spreading risk across multiple uncorrelated positions

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What is Diversification?

Diversification The practice of spreading investments across multiple assets, sectors, or strategies to reduce portfolio risk. In options trading, diversification means trading across multiple underlyings, using different strategy types, and staggering expirations. True diversification requires positions that are not highly correlated.

Complete definition

The practice of spreading investments across multiple assets, sectors, or strategies to reduce portfolio risk. In options trading, diversification means trading across multiple underlyings, using different strategy types, and staggering expirations. True diversification requires positions that are not highly correlated.

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Chains, IV rank, expected move and dealer positioning for 5,500+ US stocks and ETFs.

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  • Expected move and GEX
  • Screener and strategy P&L
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