Are you struggling in the options market and still making a profit? Let's take a look at how to hold options positions steadily and grasp the pulse of investment! Options
1. Why should the position of options be managed? Source: Caishun Options
In the option trading, the management is a vital part, which is directly related to the profit and loss of investors. Scientific management can effectively reduce investment risks and increase the winning rate of investors. In fact, many people do not pay much attention to the management of the first when doing transactions, the core of the management is to control the risk, the market can not, but it needs to be dealt with, how to turn active into passive in investment, and it is essential to do a good job in management.
2. How to manage the position of options?
1. Determine your risk tolerance: Before trading options, you must first determine your risk tolerance. Investors should be clear about the maximum level of loss they can afford and determine the size of each trade based on this.
2. According to the target contract: For optimistic contracts, you need to consider the remaining time and implied volatility, whether the implied volatility is too high, and if the volatility is **, it will accelerate the loss of time value. Once it falls, it will also be substantial.
Set a stop-loss level: When trading options, it is important to set a stop-loss level. When the market moves against expectations, timely stop-loss can help reduce losses.
Control the size: Generally speaking, when investors start to open a position, it is best not to exceed 3 percent, so that even if there is a mistake in the back, we have enough funds to make up for it.
PS: Regarding timely closing, that is, when the expected return is reached, it should be closed in time, because greed tends to make investors lose more.
3. Precautions for position of options
1. **Size: Determine the ** size of each option position, and reasonably allocate funds according to your own risk tolerance and trading strategy to avoid excessive concentration risk.
2. Risk control: set stop loss points and take profit points, formulate risk control strategies, and adjust or close positions in time to control losses.
3. Fund management: Reasonably manage funds, avoid excessive trading or excessive leverage operations, and ensure that there are sufficient funds to support holding option positions.
When holding options, you need to pay close attention to the market situation and your own risk tolerance, formulate a reasonable trading strategy, and make adjustments at any time to avoid risks. Finally, the above views are for reference only, not as a basis for trading, and profits and losses are at your own risk. The market is risky, and investors need to be cautious.