Looking for some advice on how to know when to set a stop in options trading. These options move so quickly I can be up or down 20% or more so quickly. Wondering what the best way to prevent big losses is? I seem to exit way too early on my winners and hold way to long on the losers.
This is probably one of the more challenging things to handle when trading options. I recommend having a technical break stop loss. So like if the stock breaks this level you will exit the trade or have a percent loss you are willing to accept as a stop loss. So say your stop is at 20% loss if it gets to that point you will cut the trade.
Does anyone know if it is possible to place a stop loss order on an option position that is triggered by the price of the underlying? Asking specifically about TW, but are there other platforms that offer this?
swedenumberone I know that TW does not have a stop loss option. I don’t know off the top of my head if any other platform offers a stop loss with options trading.
TW does actually have stop losses with options
KansasCityShuffle Oh snap, for real? Where? I have never been able to find a stop for options within TW.
TheBreadMaker hit the more button near bottom left then hit the "type" button
KansasCityShuffle Legit! Thanks! Now they just need to add trailing stops and I will be happy!