I recently received an email from a subscriber asking about best practices in exiting options positions:
How do you automate managing risk on options if you want to define it through the base stock price? E.g. you have calls on MSFT that you bought based on MSFT holding support at $100. Do you auto-sell (put a stop loss) on the option based on the MSFT price, not the option price itself?
Good question. And the answer is no. [Read more…]