SPVs - Expiring Between the Strikes | Trading a Smaller Account | 5-20-24

Trading a Smaller Account | Barbara Armstrong | 5-20-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
In this webcast we looked at what might happen if a Short Put Vertical is not closed out prior to expiration and end up expiring at a price in between the strikes. We had that happen with one of the example trades in our account. We also discussed when a trader might choose to exit a position prior to reaching a target and demonstrated how to do that on 2 different trades: a long call vertical and a short put vertical. We also walked through the thought process behind selling a covered call on a current stock position. Last, but not least, we added 2 new example long call vertical trades to our portfolio which included target exits on the thinkorswim paperMoney portfolio.
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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[@donnaparks4311]

Hey Barb -- what a great event in Schaumburg!! Thanks to you and Ben and all the others! I understand over 325 attendees! Both days were filled up. :🤩

[@tradertalkswebcasts]

I agree. I loved it. Ben does a great job of making technical analysis & options understandable. It was wonderful meeting you. I hope our paths cross again. ^Barb

[@mdrdr-AT]

Not sure why this was held into closing, wouldn't rules have led to closing out prior to closing? avoiding the assignment and bigger loss potential?

[@tradertalkswebcasts]

Love this comment. Our rules absolutely indicate that we should close out Short Put Vertical trades prior to expiration. I was distracted due to attending an In Person Schwab training event in Chicago and this position 'slipped by me'. Wish I could say I set it up as a training opportunity. However, once it happened, I chose to use it as a training opportunity. This type of thing could happen to anyone. It's important to understand what the choices are and how to handle it, if this does occur. However, you are absolutely correct. Closing this out prior to the expiration date would have avoided the assignment and potentially bigger loss. ^Barb