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Options trading

QuestionsCategory: QuestionsOptions trading
Peter Kovacs asked 3 years ago
Hi Pat, in a previous video you mentioned you have traded options before. And you also mentioned you traded 1-2 weeks to expiry. I know there are other trades as well with small accounts less than $5k, and would greatly benefit from your knowledge on this matter. 

1.risk management  could you please explain the position sizing for options? For example if I use 1/4 of my capitol for options i could not use the same risk parameter as stocks such as 2-3%. What would you suggest on the risk management? Use 30%? Or 50% or use the “bad below the line”? But than how would I know the dollar risk? 

2. Taking profits  where should the option trader take profits?  3. Entry you explained this in the video:  Enter just below out of the money. 

4. what expiration? you explained it already. 1-2 weeks but no less than 4 days because of time decay. 

thank you Pat! 
1 Answers
Avatar photoOwen Staff answered 3 years ago

Hi Peter,
Pat made this video for you...
https://youtu.be/jK6jkST5f_E