Using Real Market Data, a Trade With a 2:1 Potential Reward to Risk Ratio
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 | | Using Real Market Data, a Trade With a 2:1 Potential Reward to Risk Ratio | | | Using several options strategies, it is possible to limit risks to a relatively small amount in dollar terms. We recently identified a trade that risks $310, based on actual market prices at the time we reviewed the market. This is the maximum risk on the trade.
Now, that trade could lose $310, some amount less than $310 or it could deliver a gain of up to 122% or some amount less than that. The exact parameters for the risks and rewards can be calculated in real time, at the time the order is placed, and they cannot change after that.
Strictly defining risks can be appealing to some investors and this is, as we explain in our latest article, in a stock that could be appealing to some investors. It's a stock involved in the health care sector, a sector that tends to be volatile.
In the article, we explain in detail, the options strategy in theory and then we provide an actual example, and as we noted this example uses actual market data. We provide all of this to demonstrate how useful and powerful options can be and to help provide the tools to find other trades like this.
You can find all of this information in our latest free educational article that is available right here.
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