In trading we talk about the theoretical edge or the profit expectancy of any trading system. Any discussion on this should start with addressing the Risk assumed by the trader to express their theoretical edge.
Options trading presents several ways of building an asymmetry in risk/reward. This asymmetry should always be skewed toward greater reward and not greater risk. The extreme case is when traders take on risk of ruin to make small gains per trade. This is an absolute no when it comes to be building a long term stable trading strategy.
Several options strategies rely on assuming risk of ruin to enable even a respectable return on the investment.
Our view on this matter is unarguably that no single trade should assume risk of ruin of the portfolio. Just as no single trade is tasked with creating a majority of the returns over a period of time.