I’m assuming it was adjusted to reflect 25% below the price Dan filled his order at. Correct Dan?
Also, it would be very helpful if you could provide what % of our allocated $ for options in our portoflio we should use for each trade. I.E. AAPL Oct 2012 $680 should be roughly 10% of what you allocate etc..
That’s correct. Once we get our fill, we adjust the stop price to maintain the same *percentage* stop.
So for example, on a trade for 1.00 or better ($100) if we originally had specified a .10 ($10) stop and we were filled at .90 ($90) we’d adjust that 10% stop to .09 ($9) so it’s still a 10% stop.
what is that really mean? “Adjusting stop to reflect fill on AAPL Oct 2012 $680 Call for $24.4 or better. Previous stop at 19.12, now at 18.9 “
If you put a limit @ 24.4 how did you get filled @ 25.20? And why did you move the stop lower?
This thing moved fast!
why is the stop being adjusted to that particular price? Just wondering.
I’m assuming it was adjusted to reflect 25% below the price Dan filled his order at. Correct Dan?
Also, it would be very helpful if you could provide what % of our allocated $ for options in our portoflio we should use for each trade. I.E. AAPL Oct 2012 $680 should be roughly 10% of what you allocate etc..
That’s correct. Once we get our fill, we adjust the stop price to maintain the same *percentage* stop.
So for example, on a trade for 1.00 or better ($100) if we originally had specified a .10 ($10) stop and we were filled at .90 ($90) we’d adjust that 10% stop to .09 ($9) so it’s still a 10% stop.
About the stop, do you recommend using a stop limit, or a stop loss order ?