Calculating Risk Reward on short term options
Posted on July 27, 2008 - Filed Under Finance | Leave a Comment
It is very important to calculate the risk reward on short term options. This is the amount you would risk if you were wrong and the amount you would make if you were right. If you don’t figure this number out you may find that the stock may go in your favor but the option goes against you.
It is very important to calculate the risk reward on short term options. This is the amount you would risk if you were wrong and the amount you would make if you were right. If you don’t figure this number out you may find that the stock may go in your favor but the option goes against you.
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