Stop Losses: Option, Underlying or Mental

Discussion in 'Options' started by nravo, Feb 24, 2007.

  1. nravo

    nravo

    I know I should know this and in fact I probably do it correctly instinctively, but are there rules of thumb for when to place a stop loss/limit on an option versus a mental stop loss. And is it possible (at IB) to trigger a stop loss on an option when the underlying hits a certain level, and the pros and cons of this, if possible. And any other alternatives?