Why It's Important To Use Limit Orders When Initiating Options Trades…
Use Limit Orders When Initiating Options Trades
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Why It's Important To Use Limit Orders When Initiating Options Trades…
In this article, we'll explore a strategy where we not only expect options prices to drop to zero, but we strive for it and position ourselves to take advantage of it with option credit spreads. Why? Because someone else's loss becomes our gain!
Diversification, important in all investments, is critical when it comes to trading options. Especially for novice option traders, because some of your positions will be losers, the more positions you have means increased odds of hitting a home run. But with only a few positions, you could easily wipe out your portfolio very quickly…