Sometimes Losing Less is the Smartest Move

smbcapitalFree Daily Trading Video

Options Traders frequently find themselves in heavily drawn down trades near their maximum losses.

Often it’s a good idea to restructure the trade at that point, to create a realistic opportunity for a significant reduction in a loss as opposed to an improbable win.

In this video, we review an example of such a situation and the proper way to think through a realistic loss reduction goal.