What is Probability of Profit (POP)?

Dec 23, 2021

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The Probability of Profit (POP) is the probability of getting the listed Return on Investment (ROI) before the expiration of your option trade.

We need at least 100 days of historical trading data on the underlying stock to determine an option’s POP.

In the example below, there is a 57% probability of getting a 54.71% return on your cash secured call before the expiration date.

To see this option data, you must have a CoPilot by TradeSmith subscription.

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