Personally, I like to think of losses as the stock going on ...

Edward Braunhut commented on the course · Jan 1 21:24

Personally, I like to think of losses as the stock going on sale, and I only do that when I know very well, the valuation of the company and it’s performance so given that, when there is loss happening, I can almost feel people waiting to buy as long as I can Until it hits rock bottom. However, I’m completely new to options and my first few are going to be with me staring at the screen and not relying on an automatic quit.

@tough Flamingo_6039：the best idea is to expect whatever you buy to go to 0 as soon as you buy it. especially shorted dated exp. with that mentality of "this is how much I will lose" you must fit that into your risk reward plan. from there you can buy only what you are willing to lose on a single trade, and THEN set your profit targets.
stopping out on options like you said, you miss the potential move just because the underlying moved against you for a brief moment.

How to Balance the Risk and Reward of an Option Strategy?

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Edward Braunhut

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