Ten Years of Data on Where to Put Your Stop

A ten-year study on put spreads that reframes how to think about stop-losses: a stop is insurance, not a profit tool. Every stop level tested lowered the average profit per trade, because tight stops fire constantly on trades that would have finished as winners. At a 30% stop, roughly half the exits were wrong. The payoff: without a stop, the ten worst trades averaged a brutal loss, and stops shrink that dramatically. The sweet spot was wide, around 50 to 70% of premium. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 A stop-loss is insurance, not profit 00:21 Why the last two years changed things 01:18 The ten-year win rate on put spreads 02:57 What it costs when a stop fires 03:30 Half the exits were simply wrong 04:27 Why tight stops fire out of the money 05:09 The real trade-off, saved versus cost 06:02 How much stops shrink the worst losses 06:50 The cheat-sheet table explained 09:39 The takeaways, size beats stops #tastylive #marketmeasures #stoploss #putspreads #riskmanagement #positionsizing #backtest #optionseducation #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.