How to calculate our SL for option trading?

Do we need to check delta value to calculate our SL for option trading?? or their is any other way to calculate our SL?? please ans thank you :pray:

Usually people who sell options exit when premium doubles or triples. Some exit when spot breaches strike. Some roll/exit when delta doubles or reaches set value(ex 70). Do what you are comfortable with…


I agree with @Vij. It also depends on your strategy. Let’s say you have taken strangle or iron condor. The untested will provide you the hedge/cushion even if the tested doubles in premium, So you can have higher stop loss. If it’s naked put or call then you might need to have a more strict stop loss. Overall, it completely depends on the risk profile and varies from person to person and there is no one right answer. Try to cut the losses when they are small.