Stop Losses

Stop loss orders can help manage a position’s profits and losses. Not many traders have the time to monitor their portfolios constantly and close positions when the market moves against them. So what can they do to prevent the detrimental effects of an outsized move on a position’s profit and loss (P&L)?  They can manage … Continued

Fine-Tuning Stop Losses

Parts I and II in this series made the case for stop losses in options trading … and stop profits. To use stops well, it’s critical to understand how to determine the optimal stop-loss level. In this issue of luckbox, the Tactics section explores stop losses. The Basic article, Stop Losses, tests using stop losses … Continued