Hi All -
Does anyone have any input on placing a stop loss when it comes to options? For example, placing a stop loss on an option on a simple long call or put. NOT on a multi-leg option strategy.
Does anyone recommend watching the UNDERLYING chart and placing an imaginary stop loss on the underlying. After that comparing what that underlying stop loss would be equivalent to the price of the option?
Thanks in advance.
Directional conviction is ultimately and only solely your call. -- I'm not sure what kind of sure fire, magical answer you're looking for or expecting to receive.
But yeah, with options you basically watch and monitor its underlying movement. -- like a hawk,
The options reward/risk is volcanic ash spewing out...and the stock is below the ground, the magma and plates and cracks. I'm not sure that's a good analogy though.
Make Trading Great Again 2018...High-Five`