Stop Loss

Can you share what are the main reasons in trading options vs using stop
losses for the underlying? besides leverage...I can achieve leverage
just by trading the underlying on margin. I think I read a paper
somewhere are advantages of options but can't recall. The way I see it
Stop Loss is cheaper since they don't "expire" and don't have to pay
time premiums for them.



Not sure what I can tell you. Options are totally unrelated to stop
losses. True, some investors use options to gain leverage, but options
are versatile investment tools that can be used for a variety of purposes.

Options can be bought or sold. They can be used in speculative or
conservative strategies. They can be used to hedge (reduce the risk of
owning) a stock position.

You can reduce risk, other than by entering a stop loss. And, just as
reminder, even with a stop loss in place, there is no guarantee. For
example, you may enter a stop loss at $52, but if the stock, on bad
news, gap opens at $35, then $35 is the price you get.

I'd like to be more helpful, but I cannot give you an introductory
course in an e-mail. Consider getting a good beginner's book, or visit and take a look at some introductory material.

Best regards,