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But you wouldn't use the same amount of capital on an options trade. For example, if you're bankroll is $25,000, you might use it all to short the stock but it
by MichaelApproved 15y ago
But you wouldn't use the same amount of capital on an options trade. For example, if you're bankroll is $25,000, you might use it all to short the stock but it would be foolish to use it all to buy a put. It's more likely that you'd use a much smaller fraction of your stock purchasing unit size for options trading since the risk of losing 100% is higher.