Suppose you think the stock will rise $5 before the options expire. You might be surprised to learn that, sometimes, it’s the same trade, with the same basic risk profile.Ĭonsider the set of options strikes and theoretical values (TVs), where the underlying stock is trading at $240 (see table below). Do I make a debit or credit spread? Should I trade calls, puts, or a combination? Hey Coach! I’ve got my directional expectations laid out, my endpoints set, and I’m ready to place a vertical spread trade. The education coaches at TD Ameritrade can be a great resource to get all your questions answered. There are a lot of moving parts to trading options. Recognize that some options strategies have the same risk profile.Know how to look up risk profiles on the thinkorswim platform Understand when you should make a debit or credit spread
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |