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The Nature of Managing Losers

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Traders tend to control their losses by exiting position when losses reach certain level – Managing losers. How was it's performance in the past?

In this study, we compared the average performances of managing losers at 1x, 2x, 3x, 4x and 5x of the credit received. We also tested the portfolio volatility by managing losers to see if managing losers can reduce risk.

Watch this segment of Market Measures with Tom and Tony and understand the nature of managing losers.