Is it possible to enter stop orders for equity options?

Entering stop orders for equity options is indeed possible, making this statement true. A stop order is designed to become a market order once a specified price is reached. This is particularly useful for traders who want to limit potential losses or protect profits while trading equity options.

In the context of equity options, a stop order allows an investor to manage their trades more effectively by setting a predetermined price level at which they want to enter or exit a position. This can help in executing trades under favorable conditions, especially in a fast-moving market where prices can change quickly.

Other options suggest limitations or restrictions that do not apply to the functionality of stop orders for equity options. There are no specific types of equity options that preclude the use of stop orders, nor are there restrictions on their use based on trading hours that would impact their general applicability. Thus, the correct understanding here supports the usefulness and flexibility that stop orders offer in managing equity options trades.