Option Stop Loss Orders limit option risk But there are often more efficient, safer techniques for protecting credit spread positions than traditional stops.
But I keep getting questions from readers regarding how to set stops on Options trades Stop Loss This is tting A Stop Order based on the.
I have been asked several times about my thoughts on using stop loss orders when trading options The main thought I have on this topic is that options are not stocks. Stop Loss Order Stop loss orders are Getting Started in Options Trading Finding an Options Broker Options Chain Order Entry Options Transactions Types of Orders.
A stop loss order is an order placed with a broker to sell a security when it reaches a certain price.
Using Stop Orders to sell call options , put options while locking in the most profit , minimizing the risk of loss.
Using options instead of stop loss orders adds finesse , control in limiting losses