POWER OF THE STOCK OPTION SPREAD – Lesson 10

SPREADS Option strategies come in many flavors:straddles, strangles, butterflies; you name it! You’re going to learn the EASIEST, CHEAPEST, LOW RISK strategy – SPREADS :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   Question #1: … Continue reading POWER OF THE STOCK OPTION SPREAD – Lesson 10

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 OPEN A VERTICAL SPREAD ORDER – Lesson 12

Worksheet:    STEP BY STEP TO OPEN A BULL CALL VERTICAL DEBIT SPREAD Fill out this Worksheet from the following information on Starbucks   Example: BULL CALL DEBIT SPREAD Starbucks has opened upscale coffee cafes, “Reserve Café”.You believe Starbucks stock will go up and want toplace an order for a Bull Call Spread option. 1. Open TDAmeritrade account to do your research.2. Insert SBUX in “search”(upper … Continue reading HOW TO OPEN A VERTICAL SPREAD ORDER – Lesson 12

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

MAKING MONEY TRADING OPTIONS ONLINE MADE EASY – CONCLUSION ! Lesson#16

You Have Completed a Step-by-Step Online Comprehensive Stock OptionsTraining 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 rookie Moms, Dads … Continue reading MAKING MONEY TRADING OPTIONS ONLINE MADE EASY – CONCLUSION ! Lesson#16