the best idea is to expect whatever you buy to go to 0 as so...
the best idea is to expect whatever you buy to go to 0 as soon as you buy it. especially shorted dated exp. with that mentality of "this is how much I will lose" you must fit that into your risk reward plan. from there you can buy only what you are willing to lose on a single trade, and THEN set your profit targets.
stopping out on options like you said, you miss the potential move just because the underlying moved against you for a brief moment.
stopping out on options like you said, you miss the potential move just because the underlying moved against you for a brief moment.
@103873966：Could I ask if anyone has advice on setting stop loss for options? From my exp trading options I feel a little apprehensive setting stop loss because it fluctuates so much, concerned that it’ll hit the stop loss before it swings in the direction I want.
How to Balance the Risk and Reward of an Option Strategy?
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