Ive noticed some trades can show a sizable per cent loss a few days after entry?
Because options have larger bid/ask spreads, immediately after entry you will usually be down 8% to 15% even without any stock movement. If a stock then has a quick 3% to 5% move against your desired direction, a position can quickly show a paper loss of 30% to 50%. This is why we don’t believe stops should be used to protect capital and that it is better protected through position size.
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