HOW TO CLOSE A VERTICAL SPREAD ORDER – Lesson 13

STEP-BY-STEP TO CLOSE A VERTICAL SPREAD ORDER

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OPEN TASTYWORKS Desktop Trading Platform
http://www.Tastyworks.com

DESKTOP Trading Platform

Options Trading platform - Copy

HOW TO PLACE A CLOSING VERTICAL SPREAD ORDER

#1. Click on “Positions” (upper left, main menu screen)

#2. List of all options you own.

Click on stock symbol you want to close.

3. Both bid and ask legs of vertical spread will come up on a gray background.

4. RIGHT click in the center of the two legs

5. Drop down menu comes up – select “Close”.

6. 2nd drop down menu comes up – select “Full”.

REVIEW AND SEND

1. Screen will come up with all information on closing your spread.

2. On the main screen will be Expiration Date, Bid, Ask and Premium
 – all the information you entered to place your order.

3. At the bottom, left, “Order” with number of
contracts and close information.

4. Bottom, center, is the Premium price to close order
(which will be calculated “mid” price.)

Decide if you want to accept the “mid” price or change it
(using the arrows)to your calculated price premium.

5. Above mid premium price is: “Max Profit” amount; and “Max Loss” amount.

Click on “REVIEW AND SEND”:

1. Above “Send Order” will be “Type”

2. “TIF: Day” (Drop down menu to choose “Day”)

3. “Est. Cost (-transaction cost):

Print out all information on Review screen!

(Information will disappear when you click “Send”)

1. If everything looks okay – click “Send Order”.

2. To the right of the review information is:
“Working” (W) or “Filled”(F) or “Cancelled” (C).

3. Your order will be listed with a “W”,
the stock symbol and pertinent information.

4. At end of trading day:
there will be a “F” if order was filled; if not,
the W and stock symbol will disappear and you
still own spread.

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