RESEARCH-DO YOUR HOMEWORK! -Lesson 11

Recommended: Two brokerage accounts (there is no minimum funding requiredto open either account) 1. For underlying stock RESEARCH — Use TD Ameritradetrading platform: http://www.tdameritrade.com ….Underlying stock information is extensive and easy to use – $0 Commissions 2. To OPEN and CLOSE Spread Orders – Use TastyWorks trading platformhttp://www.tastyworks.com ….Specializes in options and option information is extensive TDAmeritrade has a Paper Money feature to test strategies.TastyWorks … Continue reading RESEARCH-DO YOUR HOMEWORK! -Lesson 11

HOW TO CLOSE A VERTICAL SPREAD ORDER – Lesson 13

STEP-BY-STEP TO CLOSE A VERTICAL SPREAD ORDER OPEN TASTYWORKS Desktop Trading Platformhttp://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 gray background. 4. RIGHT … Continue reading HOW TO CLOSE A VERTICAL SPREAD ORDER – Lesson 13

HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS – Lesson 14

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 calculate profit: Stock Price: $58.15OPEN … Continue reading HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS – Lesson 14

OPTION TRANSACTION RECONCILIATION and CHECKLIST – Lesson #15

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 @3.05 X … Continue reading OPTION TRANSACTION RECONCILIATION and CHECKLIST – Lesson #15