Managing Short Verticals - The Good & The Bad | Trading a Smaller Account | 5-3-24
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- เผยแพร่เมื่อ 2 พ.ค. 2024
- Trading a Smaller Account | Barbara Armstrong | 5-3-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
In this class, we focused on short verticals. We looked at trades in our example portfolio that had gone through both strikes & discussed what a trader's choices might be if they were assigned prior to expiration. We looked at a second example where the stock was currently trading in between the strikes, and we walked through what a trader's choices might be if the short strike was assigned.
We also looked at a previous short put vertical example where we chose to close out the position for a loss. We placed 2 new example trades on the thinkorswim paperMoney platform: a short put vertical and a long put with an OCO exit with a swing target.
Do you have a smaller account ($5,000? $10,000? $25,000?) or are you interested in trading a smaller portion of your larger account? Explore ways to trade, manage, define risk and learn about options strategies in this Active Trader class.
1023-3KVR
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.
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Barbra, thanks for taking us along on how you think about trades that go the opposite direction of what we hoped. This is what I needed!
You are so welcome! Glad it was helpful. ^Barb
Good lesson on puts. Thanks Barb.
You're welcome. ^Barb
Thanks Barbara
You're welcome.^Barb
Great class. Thanks for reviewing the exit conditions. Looking forward to the mini session trading plans.
My pleasure. ^Barb
Also thanks for reminding people on assignment cuz that happened to me few times. On paper account you don’t experience that opening eye moment
Absolutely true! ^Barb
Great explanation on Amat trade.
Thank you. ^Barb
Thanks, Barb for reviewing steps to analyze and decide if or when to exit a trade.
You're welcome. ^Barb
Yes, it's Sunday morning and I'm rewatching your webcast from Friday. One question I've had for a while now is, I set my chart to "candle trend" like you have yours. It took a while to get used to, but I really like it. I selected border up and fill up to be green, border down and fill down are red, which works great for the chart. However, when I go to the Marketwatch tab and select Visualize, my colors are the opposite of what they should be, i.e. AAPL on Friday looks red - and we know it wasn't! - etc. The same thing happens with my watchlists. The companies that are up on the day show a positive % change, but the color is red, not green. If I have my chart set like yours, why am I getting the opposite colors on the Marketwatch tab and the watchlists? What do I need to change so mine look like yours? Thanks, Barb. I love your Trading A Smaller Account class!
Hmmm. When you go to log in to thinkorswim, there is a sprocket in the bottom left corner. Click on that. Click on Color Scheme. Make sure it is not Chinese Dark or Chinese Light. If one of those has been selected, everything will be the opposite of what you are expecting it to be. If that is not the problem, I would suggest calling the trade desk & I'm confident they can help you resolve this issue. ^Barb
On your V "what if assigned discussion" (at 31:49 minutes in), I thought we lost .88 net on assignment per contract and gained 1.15 if we sold the put for an overall gain of just $27 per contract. Am I thinking of this properly?
I went back and watched this. You are absolutely correct. I added the 1.15 to .88 when I should have subtracted the .88. The net would have been an overall gain of $27/contract. Thank you for catching that. ^Barb
This is all kids` play ... who cares what the stock did a month ago ... you can analyze those drawings all you want and still make the wrong call and you can totally ignore them and make the right call. You might as well tie prices to Tuesday afternoon weather and be right 80% of the time ... that`s how the market works
It's interesting how there are so many different perspectives on investing and trading. If this is your belief, you might prefer to embrace a longer term buy and hold strategy. ^Barb