How to Use the Sharpe Ratio
The Sharpe Ratio is widely used to measure the performance of a given investment approach as compared to the degree of risk involved, but the metric isn’t ideal for evaluating short options/volatility trading approaches.
The Sharpe Ratio is widely used to measure the performance of a given investment approach as compared to the degree of risk involved, but the metric isn’t ideal for evaluating short options/volatility trading approaches.