SmartStops produces adjusting stop loss price points for the underlying symbol and versus the actual option. There’s an important reason for this approach. If you trade options, you know that the price fluctuations can be highly volatile and quite a difference in bid and ask pricing. Plus, option prices daily are affected by the greeks such as theta, delta, gamma etc. Plus the risk is really on the underlying symbol as to what moves to make to adjust or close one’s option trade.
So we have many subscribers who do trade options. They use SmartStops to track the underlying symbol and take action when a “warning flag” appears on their Daily Risk Report, or an instant Risk Alert is received. Those that trade options, typically put the underlying symbols into their Portfolio on our service and then upon receiving a risk alert, take action on their open option play or pick a strategy to deploy. With options as well there are many choices besides just exiting the option that can be done such as rolling to another month, adding a leg and changing the strategy etc.