How I Setup My Stop Losses For Options Trading | Real Trade Example!

In today's video, we're going to talk about how I setup my stop losses when trading options. I think having a clear trading plan before entering a trade is crucial & having a stop loss is part of that. We'll look at a real trade example that I took today on PYPL.

My Trading Equipment

Track: NOES - Like A Boss [Magic Release]
Music Provided By: Magic Records

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#Options #Trading #StopLoss

[christopher]

Seriously such a great breakdown of where to enter and exit a trade based on previous support and resistance. To me this is the easiest way to trade you just have to be patient and look for the setups. Being disciplined is so important in trading. Thanks for the awesome video

[camaroguy]

You have some of the best videos on YT! Your content is exactly what we need, technical info and how to apply it. I have learned so much from your 9-EMA videos and now this one answers another question I have had. Thank you for all you are doing and keep up the good work!

[boblab]

That was a great video. I lost more than a couple of times for not following my plan. Letting ego and FOMO take over can hurt very badly. I have since learned more control and will take the loss instead of holding on. It's good to see someone with your knowledge explain it so well. Thanks Vincent

[calebt]

Not setting a stop loss is the reason I blew my account 3 times lol. I definitely like setting mental stops based off technicals instead of a % or $ amount. This way if I get the technicals right and have that stop before I enter the % or $ amount loss won’t be devestating, but it allows me to not trade emotionally and get shaken out early(most of the time lol) or let the loss get out of hand

[kyleb]

Thanks a lot! I've been looking around for a way to set good stop losses for Options. Your idea of using the previous Options prices seems great and should help me.

[adrenaline]

Thank you! This was a great video to understand your thesis for entry and stop. What woulda been your profit exit?

Also, I noticed that when it reached your entry it reversed to your stop, with clean bear bars. Almost as the bear setup was the better trade (retroactively, of course :D ) .

Have you thought of taking setups when price reaches resistance, then the thesis is it will respect resistance and flush?

[saurabhmarwaha]

The problem I face is that option price fluctuates when I want to list a SL at a stock price. If I want to set stop at a stock price of 220 which is 1.18 option price at the time of buy, ....If stock consolidates for two hours..My option premium will have a time decay due to which it will no longer valid for 220 stock price..Do you have any idea to solution this?

[bigoof]

Lov the discipline and plan. Great vid. Ty 👍🏾

[rosal]

Using a technical level as a stop loss is a great idea. Thanks!

[chasemaglangit]

I never knew about the options chart! Learned something new! setting stopping points using that new tool

[bjjarnecke]

Unfortunately, after the AAPL (win) and first PYPL (loss) trades, I was out of capital and couldn't get in the winning PYPL move...another red day for me... Hopefully things turn around soon, getting pretty discouraged. Maybe I should just sit on the sidelines for a while until I have some more capital to trade.

[peleliuvet]

fantastic explanation. "Know your exit, before you enter".

[rodxg]

Thanks for this video, really helps! 🙂

[lungor]

Thanks for this! been dying to understand how to set stoploss for options

@Vincent, may i ask why/how u chose 125$ call but not other price?

[Damarcus_Marable]

Absolutely informative content video. I always learn from all your videos. I’m currently using TOS but having issues with the charting setup. Do you have any content showing how to setup up for option trading… having problems when I zoom in and using the drawing settings. I have to keep starting over when I’m trying to draw my support and resistance levels. The candlesticks zoom out to much I can’t see what I need to do. I hope you understand what I’m saying thanks!

[davidhowerton]

Great video now I have a better understanding using stop losses

[kentaylor]

This provided so much clarity. Thank you so much.

[davidandronicomusic]

Awesome video! I took the exact same trade, first got stopped out then got back in for a nice winner. Hindsight I wish I waited to see that breakout get retested in the morning but glad I got back in.

[morganbrown]

was never sure how to set option stop loss, great idea. thanks

[DanielRodriguez-yvoy]

Very helpful and informative explanation, thank you.