What's your prefer risk reward ratio in option trading?

Discussion in 'Options' started by Jaques, Jan 6, 2008.

  1. Jaques

    Jaques

    risk:reward
    e.g. 1:1, 1:1.5, 1:3.

    Writing in format above can avoid confusion.
     
  2. anything better than 1:1 goes for me
     
  3. not a good question, without context. Anyone would say "higher."
     
  4. Jaques

    Jaques

    Well,I think I should use another term instead of this.

    I forgot risk/reward refers to expected return.

    The original purpose of this question is since the tail event is much higher than normal distribution would suggest,the 1:2(instead of prevailing 2:1)risk/reward ratio might not be 1:2 at last.

    What should I do?Maybe I should use 2:1 so it is more understandable..?