How To Use Stop Losses For Options | Options Risk Management

[@KyngKD]

I loss everything today because I didn't use stop loss on my options! 😔 now I have a second chance and here I go. Im puting a lot of your advice in place before buying again. I learn from my mistakes and now I'm ready to make money. Congratulations on 100k !!!

[@BlackGirlStocks]

Thats all we can do queen, learn and earn. Keep doing your thing ❤️❤️❤️

[@lovealwaystiffany3436]

Thanks soooo much for this!! I’m tired of losing my bread!! 😂🤣💯🙏🏾

[@BlackGirlStocks]

📈📈📈📈

[@kenwatson7981]

I used your info on MacD today and made $2,000 trading Amazon off the MacD today and it wasn’t even that volatile today. Thank you!!! Rock on and keep smiling, you got a great smile!

[@BlackGirlStocks]

Excellent! Thats the play right there 🚨🔥

[@osvaldo37374]

What you use to trade?

[@kenwatson7981]

E*TRADE pro

[@BruceWayne2489]

Hey you’re a fantastic teacher. Im just getting into trading and I’ve been following a few other traders as well but you are by far the best teacher out of all of them. I really appreciate the way you break things down and make them much more digestible for the average beginner. Thank you so much and please continue creating the great content

[@BlackGirlStocks]

Wow! Thank you ❤️❤️❤️

[@wiseman4160]

Hi Happy New Year!! What about 20% trailing stop loss, but as stock goes into profit, like 25% or higher then do 15% trailing stop loss? Your thoughts?​@@BlackGirlStocks

[@chinakadike6625]

Thanks again for this video, I watched it last week, but for some reason I missed the part where you said that RH won't allow stop loss trades with spreads. I have been trying to figure this thing out all week about adding stop losses to all of my spreads and watched the video today. BINGO! You are the best!

[@BlackGirlStocks]

😍😍😍😍😍

[@LenasLovelyLocs1]

Alright, girl! Im here for it!

[@XGenBoomer]

You go girl. I remember when you had less than 1K subscribers. Great come up. Good luck!
✊🏿

[@BlackGirlStocks]

Thank youuuuuu 😄😄😄😄

[@fernando3061]

I've listened to so many people on youtube but your info sticks the best. You don't try and sound super smart you just relay the info and it works so well. Thank you.

[@BlackGirlStocks]

Fernando 30 Thank you so much 😀

[@wiseman4160]

​@@BlackGirlStocksApple stock for example is more volatile than say bank stock it moves slower. So for me I would sell Apple if it went down by $5 a share after buying it. Now say I bought Apple as call option pretend stock price is say $36 for me I would choose $38 strike. So for call option would I sell it if it went down to $31 like I would if it wasn't an option. Your thoughts?

[@BlackGirlStocks]

Great question! The risk-management strategy for stocks doesn't translate directly to options because of their unique characteristics. Options prices don't just move with the stock price, they're also affected by time decay, volatility, and other factors.
Let's say you bought an Apple call option with a strike price of $38. If Apple's stock price drops to $31, that doesn't mean your option price will drop proportionally as it would with stocks. So, selling if it drops to the level you'd consider for stocks might not be the best move for options.
In general, many traders set stop losses at about a 50% loss for each individual options trade. This isn’t a hard rule, but the idea here is to protect yourself from any catastrophic losses, as options can move very quickly and be quite volatile.
That being said, these decisions always depend on your individual risk tolerance and investment strategy.
@@wiseman4160

[@wiseman4160]

@@BlackGirlStocks Using example I gave and if I follow that 50% rule when would I sell? Thanks!

[@wiseman4160]

​@@BlackGirlStocksSo if I have say $1000 in options trade. I sell once option it's only worth is $500.

[@Popoutrockout]

I needed this video!!! Won 300 and then lost 700 and didn't even know about the damn option stop loss button

[@BlackGirlStocks]

Yes it is an amazing tool. All lessons learned through experience stick 📈📈📈

[@_yesjas]

Here for it 💰🙌🏽 congratulations on making over 100k subbies!!

[@BlackGirlStocks]

Jas Thank you so much 😀

[@James-hy2ee]

Thanks for the information very helpful

[@BlackGirlStocks]

Thank you, I'm glad it was helpful 📈📈📈📈

[@bigtj77]

The most helpful video I've found on this subject! Thank you!

[@BlackGirlStocks]

Thank you so much! I’m happy it was helpful ❤️❤️❤️❤️

[@leroywithgoals5378]

Congratulations Foxtail Digital and keep up the great work!!! 😎 Also, appreciate you in sharing the information on the Stop Loss and Stop Limit Price!!! 👍🏾

[@BlackGirlStocks]

Leroy With Goals Thank you so much 😀

[@risephoenix111]

Thanks again for giving us this needed Stop Loss information. You're the best.

[@BlackGirlStocks]

You're Welcome Renita K 😀

[@rinas9015]

Omg i didn't know I could do stop loss on robinhood I've been taking so many losses. So glad I have found this video you are the best

[@BlackGirlStocks]

Rina S Thank you so much 😀

[@rosesentha]

You are AMAZING!!! Thank you so much for sharing this. You deserve all of your blessings, and then some.

[@BlackGirlStocks]

Thank youuu so much 🥰🥰🥰

[@orlandoc6899]

Wow this video helped me out big time. I really appreciate your content, thank you=) and congrats on your award

[@BlackGirlStocks]

Orlando C Thank you so much 😀

[@toddgorman137]

Best video I have found explaining options, stop losses, and how to fill it out

[@BlackGirlStocks]

Thanks a lot for your positive feedback, really appreciate it!

[@erikbeschen5045]

Nice job on explaining this topic, I was looking for someone to break it down for me. Thanks.

[@BlackGirlStocks]

Thank you so much, Erik, I’m happy to help 📈📈📈

[@deeryn]

You just saved me future headaches. Thanks. I've been trying to use stops since I am a novice at trading. Your videos are gems. Thanks!

[@BlackGirlStocks]

Amazing thank you thank you Queen

[@dnaz716]

This is the one I needed! 🔥

[@BlackGirlStocks]

📈📈📈📈

[@terrywilliams2349]

Thanks this video is what I needed!!!

[@BlackGirlStocks]

📈📈📈📈

[@top10gadgets92]

Thanks

[@GermanShepherdDaphne]

You explain stocks better than most people, because you relate in simile terms! I love this! New subscriber and started trading Dec 12th 2022. I’ve been breathing, eating living learning this stuff!

[@BlackGirlStocks]

German Shepherd Daphne Channel Thank you so much 😀 and happy trading 📈📈📈📈

[@KhadafiTonedFit]

Is this good for both calls and puts.

[@leoluv04]

You deserve ALLL the plaques because you break it down sooo well for us in the back

[@BlackGirlStocks]

lol Thank youuuuu ❤️❤️❤️❤️

[@sethfrost8919]

Thank you!!! Great video!!!!... and congrats on 100k subscribers!!!!!..

[@BlackGirlStocks]

Seth Frost Thank you so much 😀

[@jessn.6206]

I'm cracking up at how you're impressing yourself with your vocabulary 🤣 😂

[@BlackGirlStocks]

I just love how the terms are becoming second nature

[@miatumutch]

You are my new favorite personal finance channel!

[@BlackGirlStocks]

Ohhhh dont make my head bigger than it is already lol

[@miatumutch]

@@BlackGirlStocks You got your 100k plaque we are way pass that boo!

[@meditatemama]

You divine magical being 😩!!! This channel should be called black girl MAGIC stocks!! Why your posts be sooo on point tho?! Seee this is why I watch the ads all the way through! You clutch ma’am!! Can you do a part two for stop loss on option spreads?

[@BlackGirlStocks]

Thats a good idea. Thank you ❤️❤️❤️❤️

[@jen.coffee32453]

Is there a setting to sell an option when it reaches a certain price profit-wise?

[@BlackGirlStocks]

Yes, that’s called a sell limit order

[@t.nelson9345]

I didn't catched the vote. And I subscribed to All.

[@BlackGirlStocks]

T. Nelson Thank you so much 😀

[@MrIJPSR]

Besides doing a stop loss on option plays. How to take profit or cancel a sell call that is a month or 2 later?

[@BlackGirlStocks]

You'll take profit by just closing that trade. Check this video out
ruclips.net/video/Vp6UgwWn0yU/видео.html

[@bethstonk8597]

AWESOME. Will you also do vids for trailing $ and trailing %.

[@BlackGirlStocks]

A video idea for the future. Thank you ❤️

[@TiarreaB.Naturally]

Great video. I was wondering how to use those stops. Thank you. 😅

[@BlackGirlStocks]

I'm glad that you found the video helpful! 😄 Stop losses can be tricky at first, but once you get the hang of it, they're a game-changer for managing risk. If you've got any more questions as you go along, just holler. Happy trading! 👍📉📈

[@TiarreaB.Naturally]

@@BlackGirlStocks 🙌🏽 Thank you very much! I truly appreciate you. 🤎 I will keep that in mind. Right now, I'm up 522% on my Robinhood account and I want to take profit on my SPY options but I bought it today and it's a margin account and I have already reached my day trading limit for the week. 😅 Can I sell it in the after hours market to avoid that rule out do I have to wait until the morning?

[@BlackGirlStocks]

Hey! That 522% gain is seriously impressive! 🚀 About selling your SPY options - technically, if it counts as a day trade and you're at your limit, selling tomorrow when the market opens is the safest bet since options don't trade after hours. However, if you've never bumped into the day trading limit before, some platforms might just give you a warning for the first slip-up. But definitely tread carefully, because if it happens again, your account could be locked for up to 90 days or possibly longer. Keep those gains rolling and try to navigate the rules as best you can! 📈👍

[@johnnyrod8010]

Thanks for the info..

[@BlackGirlStocks]

❤️❤️❤️

[@americantrapidol]

Nice plaque👌🏾🏆
I believe I was number 100,000…
What I win a date?👀🤔🤔😒

[@BlackGirlStocks]

oh wow

[@Popareeno]

Great video. I got exactly what I came for. Thank you.
Can you explain how the roll position works next, please?

[@BlackGirlStocks]

Hey, thanks so much for the kind words! I'm really glad you found what you were looking for. And absolutely, I'd be happy to dive into a video about rolling option contracts. It's a super useful strategy when you know how to use it right. Keep an eye out for that one soon!

[@MsKaren65]

Thank you so much for this!! Finally get it, on both sides. Thank you!

[@BlackGirlStocks]

Glad it helped!

[@staceybell7936]

Congrats on the RUclips plaque sis. Keep doing great deeds to your community

[@BlackGirlStocks]

Stacey Bell Thank you so much 😀

[@syednoor9672]

Very funny & informative and entertaining. Thanks

[@BlackGirlStocks]

Thank youuu ❤️❤️❤️

[@Venger02]

Great video!🔥🔥👏🏿👏🏿💥💥❤️❤️

[@BlackGirlStocks]

@Venger02 Thank you so much 😀

[@eyevow5612]

Another GEM for us here thank you for the S/O and for the great video !!! Let’s gooo💸💸💸

[@BlackGirlStocks]

Lucas Santos you already know!!! ✅✅✅✅

[@ironheadrick6244]

Congrats!

[@BlackGirlStocks]

ironhead rick Thank you so much 😀

[@lifewithzoewhite]

this was a good one

[@BlackGirlStocks]

👍🏾👍🏾👍🏾

[@BLMNRARI]

yu made this just for me lol! Thank yu 🙏🏾

[@BlackGirlStocks]

You're Welcome Rari Visuals 😀 lol

[@anthonyturner8587]

Such a great video. Thank you

[@BlackGirlStocks]

Thank you so much Anthony!

[@roslynmartin4800]

Congratulations girl. You got this from the jump.

[@BlackGirlStocks]

Roslyn Martin Thank you so much 😀

[@CallMeDOC2]

Much love to you Queen! Glad I've come across your YT platform.

[@BlackGirlStocks]

Jamel Romeo Thank you so much 😀

[@shaythomas7545]

Really needed this vid. Much appreciated. 🙏🏽

[@BlackGirlStocks]

You're Welcome Shay Thomas 😀

[@bodycarerituals1665]

Thank you so much ☺️

[@BlackGirlStocks]

You’re welcome 😊

[@marjangoodarzi3298]

I love your videos. You explain simple as well as understandable 👍👍👍 thank you 🙏 😊

[@BlackGirlStocks]

Marjan Goodarzi Thank you so much 😀

[@chizyo1983]

Thank you for this video. Congrats 👏 💓 on the plaque

[@BlackGirlStocks]

Thank you! 🤗

[@colinanthonyfarr326]

Congratulations U deserve it!!🙏🙏

[@BlackGirlStocks]

Thank you so much 😀

[@rensin7740]

Just what I was looking for. You explain the best, in human language.

[@BlackGirlStocks]

@rensin7740 Thank you so much 😀

[@sheilanfc]

useful content! thankyou i am still learning in the Nusantara fx community class

[@BlackGirlStocks]

Thank you! I'm happy to help 📈📈📈📈

[@tonyreed6913]

You are special thanks for knowledge !!!

[@BlackGirlStocks]

Thank you so much 🤗

[@18kwalker1]

Robinho often tells me Stop price can’t be lower than bid price/limit price ?

[@BlackGirlStocks]

This is a Stop LOSS, you may be talking about a Take Profit Stop order which would need to be Above where we are now

[@schooldude76]

Thanks for the help Sis!!!!

[@BlackGirlStocks]

📈📈📈📈 📈📈📈📈

[@kolibry91haiti32]

lol I just learned something new. I am no longer monitoring my options anymore! thanks

[@BlackGirlStocks]

Man! This has helped so much with managing swing trades. Make sure to check out the single order Take Profit/Stop loss as well 📈📈📈

[@aslanhodge51]

Love your videos, this helped a lot, thank you

[@BlackGirlStocks]

Thank you. I’m happy to help 📈‼️

[@mrtee8830]

Needed this 🔥
Can you cover PDT RULE

[@BlackGirlStocks]

I have, watch this video
ruclips.net/video/lWZRhXCymdQ/видео.html

[@adricharise]

So good!!! Much appreciated man

[@BlackGirlStocks]

Thank youuu ❤️❤️❤️

[@patriciaaisea6587]

First!!! Love your energy and your teachings.. Thank you!!🌺🤙🏾

[@BlackGirlStocks]

Patricia Aisea Thank you so much 😀

[@sur2hit]

Awesome love!!!!

[@BlackGirlStocks]

Ollie Thank you so much 😀

[@orlandowilliams6]

Anybody know how to place a stop loss on a PUT option? Is it any different? Placing stops on Calls makes sense, but I'm nervous that stops on Puts would be tricky.

[@BlackGirlStocks]

Hi Orlando. I stop loss on a put will be the same as the call. You'll set the stop loss at a premium value you do not want to go below. If you buy a put option for 3.0 and set your stop loss for 2.75, your option will do an automated close at that time. Its the same

[@gregzr-one5922]

When selling a put or covered call for premium how much should you pull out of the premium for taxes?

[@BlackGirlStocks]

depends on your tax bracket

[@skyz824]

how to set a stop loss for option premium according to the underling stock? ie I want to sell when the stock goes down $5 and how to figure out what premium is correlating to that $5 drop?? cuz you can't set $5 stop loss for any premium, the premiums only a few cents or couple of dollars. hope to hear from you, thanks.

[@BlackGirlStocks]

You can calculate that using your greeks; those will display how much value your option contracts value changes as the stock price changes.

[@marinas6562]

Thank you so much for this video.

[@BlackGirlStocks]

📈📈📈📈

[@lemonmaid3844]

Do you lose the premium if your stop is below the strike price?

[@BlackGirlStocks]

the stop will be an option value not stock value

[@futuremillionaire5631]

Thank you so much, I wouldn’t loose some much money had I known how to do this.

[@BlackGirlStocks]

📈📈📈📈❤️❤️❤️❤️❤️❤️

[@BlackGirlStocks]

Thank you I’m glad it can help out

[@movimientofire]

Hi Lady, Can you place a stop loss at the same time that you buy a single call option?

[@BlackGirlStocks]

yes - its called a group order

[@porter-hkd4084]

Thanks Queen

[@BlackGirlStocks]

You're Welcome Porter-HKD 😀

[@Mkzing777]

Awesome thanks for your help. You explained it so simple 😊

[@BlackGirlStocks]

Thank you Mark, I'm glad it was helpful!

[@devinthedude3294]

Lol yeah I guess I'm more risky because mine stop lose is 30%. And thats just as of recently. But I will say the best option plays I've ever had i was down 60% before it ripped 200%. So I think its all about good old human emotions

[@BlackGirlStocks]

That definitely plays apart, that psychology is no joke

[@marcuswright6837]

I love your content

[@BlackGirlStocks]

Marcus Wright Thank you so much 😀

[@investnmuscle509]

Love it great personality
and very informative 🙌

[@BlackGirlStocks]

Thank youuu ❤️❤️

[@investnmuscle509]

No thank u... keep grinding and making videos imma be a full time trader soon appreciate your video's

[@choplatina]

Thank you for this video, love you girl!!!

[@BlackGirlStocks]

leslie oppenheimer Thank you so much 😀 I love you too

[@johnminor2496]

Good job. Thank you

[@BlackGirlStocks]

Thank you too!

[@courageousone3510]

I Love all of your videos, very informative......

[@BlackGirlStocks]

Courageous One Thank you so much 😀

[@TheBeautybound]

Thanks for breaking this down. Could you please do a video on setting a stop loss/take profit in webull? I get so confused at the wording and I don't want to mess up my risk management.

[@billybeason350]

Lost a ton of money, didn't know you could stop loss on options, now I know better. Thanks for information!

[@BlackGirlStocks]

Billy Beeson Thank you! I'm happy to help

[@Mr_Duck_RVA]

Totally forgot to sub to your channel. Made sure I did it today.

[@BlackGirlStocks]

Tommy Williams Thank you so much 😀

[@sourpersiandreams4271]

Can you put a stop loss and a sell limit order in the same order? (I use Fidelity)

[@BlackGirlStocks]

I Know you can in thinkorswim but i'm not sure about fidelity. I'm pretty sure you should if it operates similar to TOS

[@kenwatson7981]

You rock! I think you’re the best options on RUclips. I had to order some merch from you!! Rock on. Keep smiling!!

[@kenwatson7981]

I know it’s not you sending those crap replies so no worries!

[@BlackGirlStocks]

omg thank you lol New merch coming soon

[@BlackGirlStocks]

theres fake spam bots on every platform now 😩 just have to delete and proceed. The show must go on

[@kenwatson7981]

Yeah I’ve seen them before when I was trying to find the right Options teacher…Bam, you’re it! lol

[@kenwatson7981]

Love the Merch!! Got the Trader T love it! Keep them coming. Got two hoodies for my kids.

[@kenericknelson9403]

Fr fr I just learned my lesson about not applying. You don’t have be monitoring all day

[@BlackGirlStocks]

📈📈📈📈

[@mustafajalali10]

On Webull can you place a stop loss simultaneously while placing a call or put order.

[@BlackGirlStocks]

Unfortunately not with Options.

[@love_movement]

When I try to set up a stop loss on robinhood it keeps saying low so price. On my a spy put at .86 I set up stop loss for .80 and limit price off .77. When I submit it says low stop price. It says since it’s below bid price it will trigger an automatic sale. I don’t want an auto sale. Last time this prompt showed and sold my contract immediately. What am I doing wrong?

[@BlackGirlStocks]

Yes, so the stop loss is the price you want to set below where the stock is now to protect your position from a 100% loss. The stop loss needs to be lower. The limit price needs to be lower than that; this is the minimus price that you'll sell it for.

[@cujosandlot8233]

Can you make updated version of this pretty please

[@BlackGirlStocks]

Hey! Absolutely, updating the video on Stop Loss orders sounds like a great idea-definitely something that could use a fresh take. I’ll start planning that out. Thanks for suggesting it! Keep an eye out for it soon. 😊

[@cujosandlot8233]

@@BlackGirlStocks perfect thank you

[@maxjoey197]

Thank you 😘

[@BlackGirlStocks]

📈📈📈📈

[@absolutebosscollective8202]

Congratulations Queen!

[@BlackGirlStocks]

Thank you 📈📈📈📈

[@stefanohagiavintostefanoha7346]

Hi Black Girl Stocks, ty for the video, it' s really interesting and valuable. May I ask you if the same of 08:50 goes for Naked set puts? Can I use Stop Loss on naked Sell Put? Yes or no? Thanks in advance!

[@BlackGirlStocks]

Yes, you can use a stop-loss order on a naked put sell.

[@PharaohRobinson]

I'm in class. 🤓Thank you Queen👑 Blessing on Blessings coming for bringing a much needed Social economic platform which is financial wellness, education, and future to the online black community and online American community in general. Our education system, want to leave us sleep as financially strapped being tied to lower tier system. Thank you for breaking the Matrix. No longer....One chose to be sleep. 🖤💯👑🙌🏿
✊🏿✊🏾✊🏽✊🏼

[@BlackGirlStocks]

Pharaoh Robinson Thank you so much 😀

[@TheBestLoserWins]

Does a 10% trailing stop give you enough room to let the option move, or would 20 be better. I'm just trying to get up (green) on tbe trade and pull say 20 to 40 percent profit. Thank yoy.

[@BlackGirlStocks]

Hey Larry, for that I would say, volatility will play a good role. If you have a more volatile stock, then pushing out your stoploss will help prevent whipsaws.

[@TheBestLoserWins]

@@BlackGirlStocks Thank you

[@getwoke1148]

I tried to follow your example but RH is saying I don't have enough shares for collateral needed. I'm not sure what I'm doing wrong. I work overnight and sleep during the day, I need this failsafe. Please help☺️

[@mypointofblue5260]

Thanks for the breakdown!

[@BlackGirlStocks]

I'm Glad it was helpful!

[@Fee.1]

What’s a tiblio

[@BlackGirlStocks]

Online Option screening service

[@bellango9132]

Can you address LEAP Option stop loss for me please!
I absolutely love your style and authenticity! Thank you

[@BlackGirlStocks]

Hey, thank you for bringing this up! 😊 I appreciate your kind words about my style and authenticity. Taking note of your request about a video on LEAP Option stop loss - sounds like a great topic many will find useful! Keep those suggestions coming, they're really helpful. Till then, happy trading! 📈💼🚀

[@crazytrain7721]

Any info on trailing stop losses?

[@BlackGirlStocks]

Honestly I don't use them at the moment because my main trading platform, Webull, doesn't currently offer trailing stop losses for options.
However, I've been considering the idea of creating a trailing stop loss, based around implied volatility. In simplest terms, the idea would be to adjust your stop loss as the underlying security's implied volatility changes. It's a bit like letting the market's volatility guide your risk management strategy.
To set a basic trailing stop loss for options, you can choose a fixed percentage or dollar amount that you'd like to use as your trailing stop distance. For new investors, a common recommendation is to use a trailing stop loss of around 10-15% below the current market value of the option. This percentage can vary depending on your individual risk tolerance and the option's historical volatility.
For example, if you purchase an option contract at $10 and set a 10% trailing stop loss, your initial stop loss would be set at $9. If the option rises to $15, your new stop loss would be adjusted to $13.5 (10% below the new option price). This way, you protect your profits while still allowing for market fluctuations.
It's a work in progress and quite technical, but it could be a good strategy to play with. I'll certainly share more about it once I've got a good handle on the method.
I hope this brings some insight

[@gigitulip7935]

Please help. My teacher says I should be putting 60 percent into my stop loss but idk how to add the percentages into the stop loss numbers

[@BlackGirlStocks]

If you're looking at Option premium you can just use a calculator, put in the premium and subtract the percentage.
Ex. 1.25 - 60% = or .5 for your stop loss.

[@gigitulip7935]

@@BlackGirlStocks ty ❤️