The need of RM : Stop Loss

syaiful

Member
Hi David, :lol:

could you please explain this ?

An Option trader sells a call with a K = $40. Which of the following describe stop loss strategy ?

a. hold the underlying stock, regardless of price
b. puts in a limit order for the stock if it it rises > $40
c. buy order for the stock if it falls < $40
d. hold the underlying stock, if the stock rises > $40
 
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