STOCK MARKET ANIMALS Are You a BULL or a BEAR ? BULL is an option entrepreneur who believes that the market or option will rise in value. BEAR is someone who believes the market or option will drop in value. Actually, the Market itself is a fearless Honey Badger who doesn’t really care what you think. Question #1: If you are … Continue reading BULLS, BEARS and HONEY BADGERS
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 SPREAD http://www.TastyWorks.com Example: BULL CALL 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 to do your research. 2. Insert SBUX in “search”(upper right corner) 3. Fill-in-the-blanks on Bull Call Strategy Template. 4. … Continue reading HOW TO OPEN A VERTICAL SPREAD ORDER
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. Take the DIFFERENCE in strike prices (must be in-the-money) 2. less the PREMIUM (debit) paid Example to … Continue reading HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS
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 “Portfolio” (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
DID I MAKE A PROFIT OR LOSS? “At the end of the day”, make sure your contracts were right on target! START: ACCOUNT RECONCILIATION 1. Log in to Tastyworks site. Along the top of site: “Trading Platform“, “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: … 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 !