Click [HERE] to download the TradeSize pro setup file.
This works in principle the same as with the stocks example.
The BuyCall Alert is generated on the underlying stock price but we want to buy an Option which represents 100 shares for that stock. For the Entry Price we must find a Bid price for an "at the money" Option which expires in about 6 month. Since the Entry Price is set on the Option bid price we can not use the stock price for the StopLoss Price! Now we must also use the Option Price for the StopLoss Price.
Account Size = 40000, Maximum Risk % = 2,5, Commission = fixed price/unit (here 1 unit is 1 Option) = 4,25, Entry Price is the Option bid price is 350 (100x3,50) . The StopLoss Price is set a 200.(100x2,00)
Result you can buy 6 Call Options for a price of 350. Money risk is 951,00 Money in use is 2125,25 and the BEP is 358,50 (this will actually become 355 because of the price arrangements on the Option prices so 100x3,55)
Set a StopLoss order at the StopLoss Price (the Options Ask Price) of 200 (100x2,00) and again you are covered to stay within you money risk of 2,5%.