Options are a type of tradable asset. But unlike stocks, commodities, or similar, an option is placing a bet on what will happen to another stock.
In practice, the chart looks exactly the same, and the 180 Trading Strategy can work with options just fine. However, there is some difference terms used to describe options in comparison to other kinds of assets.
The biggest difference is the use of premiums. With options, there is a strike price - which is the insurance you attach to each share you bet on. Say I have bet on 100 shares and there is a strike price of $5 per share. That equals a premium of $500. Then I would have only $500 downside - similar to a stop loss order in stocks - but unlimited upward potential.
So I would do a calculation of: (8%loss)/(shares)=strike price.
($500 losable premium) / (100 shares) = $5 strike price
Additionally, options orders all have an expiration date. Because you aren't buying the option right away - instead you're betting that the price will go a certain direction in a certain period of time - you can decide to just walk away from a poorly performing bet by just letting the order expire.
https://www.investopedia.com/terms/s/stockoption.asp https://www.nerdwallet.com/blog/investing/options-trading-101/ https://www.nerdwallet.com/blog/investing/options-trading-strategies/
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