Articles tagged with "adjust"

Why We Always Have to Use Limit Orders in Options Trading

Why We Always Have to Use Limit Orders in Options Trading

A few weeks ago, we discussed how a stop-loss order works and why they’re so important. While a stop-loss is a key piece to risk management, some investors may not prefer to have a “hard” stop-loss. That is, a stop-loss order that is placed with a broker. Others prefer to monitor the position and, if […]

How to add legs to an existing options position

Adjusting 101: How to Add Legs to an Existing Options Position

When referring to options trading, it’s easy to first think of stock trading. Especially given that most, if not all traders, begin by using stocks before some graduate to using options. When a trader buys stock — say 100 shares — what options do they have as the trade develops? In its simplest form, the […]