Yeah, I know. Usually I'm only buying 1 contract though. In the interest of education for everyone, here's usually how it goes:jwhitlock3 said:AgEng06 said:
Man, I have to learn how to set stops or manage trades better. I'm making small profits with 30k's plays, but keep missing out on a lot by setting trailing stops too tight. Inevitably I get stopped and then the trade runs again.
Some of this is position size as well I think. If your positioned small enough you're more willing to let the play work.
- Buy the option for close to the call out price, set alert for stop price.
- If alert, usually sell at stop.
- If price increases, set a trailing stop once ~20% profit is reached. Here I think I set my stop too tight, usually ~$0.10, resulting in <20% gain.
- Get stopped out, option continues to run, sometimes to very large potential gains.
Obviously I need to work on a better understanding of why the call is made in the first place, so I can better manage it.... I know.
