Multi-leg trading (2 or 3 legs)

Discussion in 'Options' started by marsman, Jun 1, 2016.

  1. Jones75

    Jones75

    I mainly trade "long put synthetic straddles" and leg into the put options first. The b/a spread (especially if super tight) tends to move against you a lot quicker than the stock spread.

    Also if something goes awry while holding the stock (computer crash or MM takes a smoke break, etc.), big losses can happen, while the options have smaller overall dollar risk.
     
    #11     Jun 2, 2016