V.18:11 (58-64): Options Or Stops? by Joe Luisi

V.18:11 (58-64): Options Or Stops? by Joe Luisi
Item# \V18\C11\105OPT
$2.95
Availability: In Stock

Product Description

Options Or Stops? by Joe Luisi

Options may cost less and give you more flexibility than outright stops. Hereís how to choose between options and stops and some ways of using both throughout the life of the trade.

Stops are essential, but they donít have to be orders to buy or sell stock or futures. Options are sometimes preferable to futures or stocks, due to their limited risk:if you own them, you can only lose the cost of the option. Here ís how to go about it.

Once you take a futures position either buying or selling, you should place a stop to get you out of the market if your analysis turns out to be wrong. Typically, traders use a swing high or low as a stop point, or maybe a recent high/low, or lowest low/highest high of the last x number of days.

Some use a money stop, say $500. The only problem with a money stop is that if a market becomes volatile, the $500 stop may actually be too tight.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order