Does anyone manage their risk using the R-Multiple approach that Dr. Van Tharp introduced in his books? To me its a very concise way to trade, and disciplines the trader in always having a pre-determined stop for each and every trade, thus establishing your 1R. I just don't understand how to apply R-Multiple with options. Do you calculate your risk (1R) using the stock price as your stop? Or do you use the options premium price? Or what? Anyone have any input to this method?