Search results

The position would still be open because it hadn't reached maximum profit yet. I talked to Optionshouse, though, and they gave me the specifics about how they handle assignment. Thank you all.

Ah, I had read some of the older threads about risk management, Kelly criterion, and it seemed like quite a few traders had warned about risking too much of your capital at any given time. Thanks for clarifying!

Okay, thanks! I did mean a debit spread, and I'll take your advice. I was attracted to the vertical spreads because of the fixed risk/reward and easily calculated ratio. It seems like you're saying to never write options? You completely understand my question. Optionshouse still...

If you are only supposed to risk 2-5% of your trading funds per trade, does it then mean the minimum I should save to start trading would be 20 to 50 times whatever the average cost of my position would be? So I want to start trading LEAP options, five contracts at a time.. (approximately 4k...

Recently I've decided to understand derivatives and options trading. With my research I've also opened a demo account with Optionshouse to test out a trading platform and have some experience placing trades. I'm going to be depositing a small amount (<$5000) in the account to test strategies...