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.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!