Let's talk about each of these risk metrics and understand the advantages and limitations of each.
The butterfly strategy is one of the safer option strategies available to a trader and is well worth learning.
My motto is that position sizing is the only sure way to reduce risk.
Many traders are confused by how the type of account they have affects their option trading.
Phil McDonnell talks about using the VIX to predict Market direction.
Phil McDonnell talks about how the Reflection Principle can be used to analyze Stop Losses, Profit Targets and Option Exit Strategies.
At this market juncture the home furnishing stocks are doing well.
Phil McDonnell talks about using Delta and Gamma to Control Risk and Hedge.
Phil McDonnell talks about why avoiding lossesis more important than focusing on wins.
The key for an options trader is to know when to put on a protective hedge to manage risk.