Option strategies come in many flavors: straddles, strangles, butterflies; you name it! You’re going to learn the EASIEST, CHEAPEST, LOW RISK strategy – the Debit Call Spread, a/k/a Long Call Vertical, a/k/a Bull Call Spread. A SPREAD is a position where you SIMULTANEOUSLY buy one Call (or Put)and sell another Call (or Put). There are 3 directions of spreads: Vertical —- Horizontal —– Diagonal … Continue reading POWER OF THE STOCK OPTION SPREAD
Recommended: Two brokerage accounts (there is no minimum funding required to open either account) 1. For underlying stock RESEARCH — Use TD Ameritrade trading platform: http://www.tdameritrade.com ….Underlying stock information is extensive and easy to use ….High commissions: per contract, (open $6.95 and close $6.95) Regulatory fees: 75¢ per contract (spread, 2 legs = $1.50 open, $1.50 close) Total spread: Open $6.95 + $1.50. Plus, Close … Continue reading RESEARCH – DO YOUR HOMEWORK !
STEP BY STEP TO OPEN A BULL CALL VERTICAL DEBIT SPREAD HOMEWORK: Let’s try using research in your TDAmeritrade account to find a great underlying stock. http://www.TDAmeritrade.com Example: BULL CALL DEBIT SPREAD Starbucks has opened upscale coffee cafes, “Reserve Café”. You believe Starbucks stock will go up and want to place an order for a Bull Call Spread option. 1. Open TDAmeritrade account … Continue reading HOW TO OPEN A VERTICAL SPREAD ORDER
STEP-BY-STEP TO CLOSE A VERTICAL SPREAD ORDER OPEN TASTYWORKS Desktop Trading Platform http://www.Tastyworks.com DESKTOP Trading Platform 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 … Continue reading HOW TO CLOSE A VERTICAL SPREAD ORDER
O OPTIONS IS NOT A GUESSING GAME ! You always know the MAXIMUM profit you can make AND the MAXIMUM amount you can lose before opening an order! HOW TO CALCULATE BULL CALL VERTICAL SPREAD – PROFIT MAXIMUM PROFIT (Cannot make more than this): 1. Must be in-the-money 2. Subtract the OPEN premium from the CLOSE premium X 100 Example to … Continue reading HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS
DID I MAKE A PROFIT OR LOSS? START: ACCOUNT RECONCILIATION 1. Log in to Tastyworks site. Along the left side of black desktop site: “Trade“, “My Accounts“, “My Money“, “My Profile” 2. Click “My Accounts“. Drop down menu: Select “Transactions” 3. Latest “filled” order comes up — Print BULL CALL DEBIT SPREAD: Transaction example: OPEN: 12/06/17… Trade JD…Sold 5 JD 03/16/18 Call 36.00 6:30:00am … Continue reading VERTICAL SPREAD OPTION RECONCILIATION
You Have Completed a Step-by-Step Online Comprehesive Stock Options Training Program. One of the keys to options success is being levelheaded and disciplined, even under volatile conditions. It’s hard to teach discipline, but with more experience, you’ll learn what NOT TO DO. There is no rush. Don’t feel pressured to enter the options market until you are ready. This Training Program gives … Continue reading MAKING MONEY TRADING OPTIONS ONLINE MADE EASY – CONCLUSION !