January 21, 2009
trading options?
romanzoffia asked:
what option strategy offers a combination of the possibility of large reward, with the safeguard of being easy to adjust to protect the money invested?
what option strategy offers a combination of the possibility of large reward, with the safeguard of being easy to adjust to protect the money invested?
Filed under Investing by Administrator
Joe asked:
What percentage or dollar amount is best to set a stop
when trading options? Option prices can fluctuate quite
a bit, so even if the option eventually increases in
value and becomes profitable, it can drop significantly
before doing so, which means a stop can be triggered
during this temporary drop in value. What amount/percent
works best, to avoid triggering a stop during a longer-term increase in value?
What percentage or dollar amount is best to set a stop
when trading options? Option prices can fluctuate quite
a bit, so even if the option eventually increases in
value and becomes profitable, it can drop significantly
before doing so, which means a stop can be triggered
during this temporary drop in value. What amount/percent
works best, to avoid triggering a stop during a longer-term increase in value?
Filed under Investing by Administrator