Considering Defined Risk Spreads in Volatile Markets | Swing Trading (Days to Weeks)

Considering Defined Risk Spreads in Volatile Markets | Swing Trading (Days to Weeks)

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good day everyone john mcnichol here and welcome to swing trading days to weeks so we have seen over the last few weeks that volatility is still here as we've seen markets swing both up and down predominantly down there but we'll go ahead and we'll take a look on applying some defined risk trades to set some expectations as far as price and time over the near term so stick around [Music] all right it's great to see those that are live with us today uh we got uh wayne larry frank uh we got uh soul vijay robert and everyone else coming online there mr james boyd is helping out on the chat today do appreciate him supporting this webcast here you can follow james on some of his numerous webcasts as well by simply going to the education tab uh on titty ameritrade.com as well as on thinkorswim uh you can also google him on youtube as well as google along with myself there but by the education tab we have a webcast link and via that webcast link you have access to uh all over under all of our other wonderful webcasts taught by various instructors you can see upcoming sessions and if you can't catch live sessions like some of you are here today make sure you take a look at the archive webcasts and you can see some of our previous sessions for today uh such as james earlier talking about using options as a stock investor all right so great uh resources for you hopefully you take advantage of that let's go ahead and take care of the disclosures and get right into our discussion contents intended for educational information purposes only not investment advice or recommendation of any security strategy or account type options not suitable for all investors spread straddles of the multi-lake option strategies uh some things we'll be talking about here today can entail substantial transaction costs multiple commissions advance option strategies often involve greater more complex risk than single leg option trades likewise keep in mind a long option whether call or put places the entire cost of the option premium at risk likewise with short options it could be assigned at any time up until the expiration date regardless of the in the money amount now while this webcast may discuss technical analysis other approaches include fundamental analysis may assert very different views and in order to demonstrate the functionality of the platform we are using actual symbols keeping in mind td ameritrade does not make recommendations or determine suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility there's a brief bio let me know if you are new to this webcast this webcast is a little more intermediate to advanced focusing on short-term trading we do have various other webcasts for beginners such as getting started with technical analysis along with getting started with options that are available via that webcast page that i showed you likewise we do have workshops going on i'm in the midst of teaching a option strategies workshop we're on our second day we'll be talking about cover calls tonight that is a live only session if you are interested in that feel free to go ahead and take a look at the events link on the education tab and you can also see our schedule for upcoming workshops that my good friend james boyd also teaches as well all right let's go ahead and take care of her agenda here hopefully everyone's enjoying their day uh my voice is steadily and proven after uh going on a little more of a week with a pretty harsh summer cold uh non-covid i'm happy to say but we'll go ahead and review some of the current market conditions we're going to demonstrate how to place a defined risk vertical spread we'll see examples for both a short vertical as well as a long vertical really based off of expectations as far as time as well as price or direction and being in more volatile markets that we've been saying uh hopefully it's a little reassuring to at least have a trade with a defined risk whereas with a short-term stock trade utilizing a stop which is not guaranteed to fill at a particular price there are things such as gaap risk don't have to look too far versus snap this morning there which helped the market uh open lower on the day and we could look back at other stocks such as netflix uh there can be significant downside risk obviously with any instrument and being able to define that risk before you trade may be pretty helpful particularly in this environment and then we'll go ahead and we'll review some of those trade management techniques along the way as well as each and every week we attempt to review uh each and every practice trade that we do with our practice account all right so let's go ahead and take a look at the market there see how things are setting up looking at the s p 500 uh this has been a theme uh that we have been discussing uh in previous time frames uh about potentially the market trying to find a base of support with the s p still holding around areas in the low range around the 38 40 area and even though we're seeing negative price action today we still have been an hour left until the close there but potentially are we seeing a little more of a higher low compared to what we had saw late last week and at least see an attempt for that support area to hold the divergence that we had previously discussed uh continues to for some reason i cannot bring up my drawing tools one of these days we'll be able to get this fixed here so let me try this one more time i have to take a few lessons from james here uh with the price action you know still being in a downtrend we are seeing a continuation of some positive divergence you know after those lows being set into that support now whether that translates into bullish reversal or just a shorter term uh bear market rally uh will be determined now there's a lot of catalyst this week as far as news uh that can uh give some direction there we'll highlight some of that looking at the nasdaq as far as with its price action nasdaq a little more on the bearer side even though still above the low from uh friday we noticed that price did break below an example of a key level and still kind of hanging around there now some traders may refer to this as a little more of a descending triangle where we're seeing that descending trend and some horizontal support also relative strength continuing to fall on the nasdaq as a lot of those tech related stocks are still correcting and firmly in a bear market if you look at some of the sector action for today only consumer staples and real estate uh edging out some gains so more defensive there as yields have backed off and those you have followed me in futures we've talked about a potential counter move in the bonds as far as yields uh backing off a little bit now that's been playing out and however you would think that that would benefit other areas such as consumer discretionary growth information technology but the weight is still there uh with concerns on inflation supply chain uh and likewise the feds still overall uh fighting inflation and hiking rates uh having um some concerns or possibly some demand destruction as well uh and consumer discretionary now whether that's an overreaction will be determined but we can see again kind of mixed in the markets today also mentioned utilities also benefiting today as well so no life to the bullish side as far as the nasdaq as a whole at the moment looking at the djx for the dow dow as well uh finding some potential longer term support based off of some of the previous rallies uh that hammer bit of a follow-through from yesterday not so much today and we've also talked from a shorter term standpoint is looking at these long-range days in this case on the downside i'm just kind of guesstimating there what some traders may do is take a tool such as a fibonacci retracement and trying to peg the middle part of that candle as midpoints of long range days can act as resistance and now it's a little congested there but there's the 50 mark i'm going to go ahead and mark that and we'll remove the fib so keep in mind bit of a resistance there and so for a follow through from a short term on breaking that downward trend traders would probably would like to see prices break higher whether we see that or not or this is more of a bare flag and prices rolling over based off of some of the drivers on the news i will take a look so as we look at these indices some mixed signals there looking at the russell with the small caps again holding a support area uh slightly making some higher lows here not much of a follow-through that we saw with the larger caps and kind of uh drifting down a little bit today being below the low of that previous high day however we have seen some relative strength outside the last two sessions on small caps so kind of battling out to see if this is going to end up being a base or if this is kind of more of a squeeze for a triangle as that price action is squeezing in you see those moving averages and whether this with these higher lows forming that triangle bearish case would be a breakdown taking out those lows more of a bullish case or at least for a bear market rally is looking for a break to the upside outside of this now not much of a divergence as far as momentum but momentum has shifted a little more positive implying at least a more recent selling to hold that support for the moment if we go ahead and take a look at uh things to keep an eye on from a short-term perspective over this next week if we go ahead and go to research ideas on the td ameritrade website go ahead and take a look at the calendar and then go up here to the upper right where it says economic events scrolling down we can see economic events throughout the rest of the week for instance on tuesday we had new home sales new home sales did come in uh under uh the consensus significantly there point towards a little slow down there or at least with us inventories as well tomorrow probably big one's going to be durable orders as well as the fomc minutes uh now i'm not on the schedule from today i believe uh chairman powell did talk today i was not able to see notes uh if anyone wants to share a summary of what he said outside i'm sure they're committed to fighting inflation or that's what they're saying is probably a theme going into thursday another other signs of growth looking at the second estimate for the gdp along with the gdp deflator second estimate pending home sales and uh initial claims continuing claims you know we have seen some layoffs from some growth companies not sure how long it'll take for those numbers to work themselves in but we'll see if there's any negative changes as far as on employment and then going into the end of the week we have personal income along with spending see how consumers are making out or not making out along with uh expenditures uh personal consumption prices as well as on the core coming out going into friday so as you can see kind of a a target rich environment as far as news and based off of that can certainly bring volatility now one can certainly choose not to trade uh through those events that is a decision one can make but this is a webcast we are teaching about swing trading so let's kind of focus on what we're seeing now and also defining risk in the trade that way if we don't have a positive outcome we know what a worst case scenario could potentially be with some of the examples we'll look at today all right so with that let's go ahead and take a look at examples for some vertical spreads now if you're not as familiar with vertical spreads would consider uh having you take a look at our options education trading options also our advanced options class which cover down on that what we're going to do is basically buy one option to kind of simulate a stock position but we're also going to go ahead and sell an additional option against it which will reduce the net cost of the trade and that short strike may be a reference point as far as in the case of a long spread where we may be targeting price because with a swing trade we have an expectation what may occur over the next several days to weeks as well as what is our expected price movement whether up or down likewise as an example we'll look at a short vertical example where we may have an expectation of maybe not necessarily bullish or bearish but maybe just expecting support to hold over at least a shorter period of time and we'll see if we can do an example of that as well so let's go ahead and bring up a few here we'll also go ahead and answer your questions as well let me just double check here as we look at some of the questions here before we kick off making sure he didn't miss anything with our market review and what some of you may be thinking there appreciate james for helping out on the chat question was when selling covered calls or generally when it comes with selling any options implied volatility may be a consideration we'll take a look at that as we look at some of our examples here today let's see and i think uh everything else got taken up here kevin says mack the histogram on spx says green up candles does that mean the spx price is going to go up well keep in mind technical analysis is not a forecasting tool remember it looks at past history so all that divergence implies is that downward momentum or should go downward momentum all right as the price was going down the acceleration slowed down and i kind of look at that as an analogy of potentially making a u-turn key word or operative word potentially make a u-turn so let's say i'm going down the road and i forgot something at home and i'm thinking about making a u-turn well what do you typically do before you make that u-turn do you still stay on the gas or do you have a tendency of slowing down maybe putting on the brakes that's what that divergence is doing however let's say i change my mind uh if i change my mind i'm just going to continue going in the direction that i'm going in this case for the market that would be continuing going down after making a pause but a divergence could possibly imply a potential reversal or a turnaround uh if the market is planning on holding that support okay it's not a hundred percent uh but at the very least it implies potentially some form of consolidation and so we would expect to possibly see patterns such as rectangles and triangles which we've experienced on looking at in some of those market indices so great question there all right let's go ahead and get into our examples here i was looking at a few uh beforehand let's do an example of an assumption on price possibly being at support i was looking at two examples one being uh dow dow chemical we're seeing a stock that generally has been in an uptrend uh unlike other stocks that are both quite a bit below their averages including indices notice the price action has potentially found some support in this case at a 55-day moving average uh notice we have more of a rectangular pattern and relative strength compared to the broader market has generally been going up uh so you know if one's looking at being bullish on something even though we are in a bear market it would make sense to focus on stocks that are uh in more of a relatively stronger trend uh or possibly add some key support we have a potential hammer there however we don't have a hold which would be price closing above the high the low day if one was taking a bullish trade the assumption would be that they're expecting this support to hold and possibly a follow-through of price bouncing now again news this week can make that falter if price breaks down that would be a bearish reversal and dow may be joining other stocks in a downtrend okay now so let's say for this example uh the assumption may be of just expecting uh that support to hold kind of more neutral to bullish well one strategy we can consider would be a short put vertical this type of trade enables us to receive a credit uh whereas we would expect the price to hold a certain level it would benefit from the passage of time it would also benefit if volatility drops so let's look at the case for that well one if we were to look at vix for volatility and this is where again volatility is not necessarily giving us very good answers as far as potential direction because notice volatility has a bit of a squeeze here as well question is are you looking at the glass half empty or half full the bearish case markets continue to fall we may see a pop and a break to higher levels of volatility now there are bears out there and that it's just a matter of opinion uh that speculating that the bear market over the near terms not going to be over unless we see a spike in volatility closer to 40. now whether that occurs or not we'll see the bullish case is that volatility continues drifting down and prices will rise and in this case a bullish strategy such as a bull put vertical would benefit if this volatility drops now if we go ahead and we take a look at dow again you can also view implied volatility on the chart or look at the option statistics let's go ahead and actually look at the option statistics by going to the trade tab here's dow if we scroll down and we look at today's option statistics we look at this iv percentile it's saying 47 percent now in the case of dao this means that the historic implied volatility is kind of right in the center meaning there's risk to volatility rising there's risk of volatility falling which seems to be kind of in line on what we saw with the vix so we're not overall necessarily looking for a big edge on volatility but if prices rise volatility has a tendency to fall all right now if we were to determine in the case of dow expecting the price levels to hold and possibly trade up into this range we can go ahead and look an example of a put vertical which would be out of the money and setting a strike a short strike that is at or below support now typically we look at those deltas that have a probability of being in the money about 30 to 40 percent which means would be a probability of 60 to 70 percent probability of expiring worthless and that would be a higher probable trade and if we go to the trade tab and look at some examples for this let's say as far as number of days uh looking at somewhere around 20 uh to 30 days some traders may go even further let's say i go out about 24 days i'm going to look at the put side we have our layout here where it says delta delta gamma theta vega so we can see the greeks we've been talking about greeks in our trading options course we'll be talking more about them tonight with cover calls uh if i look for a 30 to 40 delta here we got around the 64 strike with a close to a 30 delta if we look at those charts notice 64 is below this supports below that moving average it's below that support so if the support holds this trade would be profitable minus any transaction fees it may take a little time to do that but we'll go ahead and do an example so i'm going to do is i'm going to right click on this 64 strike and i'm going to go ahead and select cell vertical now we have a short put vertical it defaults to the next strike so we have a one dollar wide there's a little bit of a spread here between the current price and the mid price but if we're able to get closer to about 25 percent 25 cents on the dollar that would equate out to be about a 30 return on risk which would be a bit desirable based off of probabilities and the reward for those probabilities now i can also make this spread a little bit wider i believe when i was looking at this prior to the class was actually looking at a two dollar wide 64.62 previously it had a credit of about 54 cents now that may have changed since we looked at it since i looked at it earlier let's go back to that trade tab i think i may have lost that order give me a second here let's just go ahead and do that again i'm going to right click cell vertical and i'm going to adjust the long strike to 62. so now we have a two dollar wide a little less of a credit there a little wider there too we'll see if this gets filled or not if i hit the confirm and send we can see the the fine risk which which is going to be the spread two dollars that's the most that could be made or lost in the spread times the multiplier which is a hundred so the most that this spread could be worth is two dollars or between the gain and the loss wouldn't exceed two hundred dollars now right now it's showing a loss of about i can use that to position size to a maximum loss and define my risk since it is a higher probability trade it is going to have less of reward but this is about a 30 percent return on risk also the break even 64.48 which makes it a little more of a higher probable trade as long as the price stays above 63.48

which is about three dollars below where it is right now this would be a profitable trade now there are some risks and we'll talk about that but let's say we go ahead and position size this where i'm willing to risk 500 on the trade i can go ahead and make this three times we'll do confirm and send so i'm risking 444 to potentially make 156. okay now let's say i'll do a confirm and send we'll send this one through see if it gets filled notice it did not get filled right away i'll let that sit for a little bit we'll see if it pops up i may have to go ahead and adjust that price uh so we talked about an example of a short put vertical which is a defined risk higher probable trade with just the expection expectation of price holding that support and if it does do that going in expiration that'll have a maximum gain now from a profitability standpoint we may look to manage that trade where if we're able to capture a percentage of that maximum gain is consider closing out the trade at that point and so for that example and as a matter of trying to see if we can get this taken care of i'm going to go ahead and put in a level somewhere in between the natural price and the mid price the closer we are to the natural price would increase the probability of it being filled your results may vary now notice in that example we came a little bit in between i got an example of a fill now if i go ahead and go to the monitor tab and there's dao right there this is keeping track of our p l for the open the p l for today we can add another column here which is called p l percent notice it's showing right here if you go to the right there's a gear and click on that gear you can go ahead and bring up p l percent okay and what that'll do is it'll basically keep track of the return on the amount of risk that you have now that's not necessarily going to be the perfect way of doing this depending on the spread but at least gives you an idea of that profitability another way of doing it is we went ahead and basically had bought or bought 87 cents and sold a buck 38 that came out to a credit as we go to the field orders came out to a credit of 51 cents now what we can say is if that credit depreciates let's say down to 10 cents or lower that would realize about 80 percent of that maximum gain we can then go ahead and close out that trade if that occurs at any time during the life of that spread however if we have not reached that target as we get closer to expiration then the idea is to possibly close it out in that last week think around seven to ten days the closer we get to that the idea being to close out the trade and lock in whatever gains or possibly limit whatever loss that may be associated with that now there is a risk of what we would call assignment if the stock drops below 64. that short option would be in the money which means that one maybe put the stock at 64.

that would be a potential risk now remember if this occurs before expiration you also have a long option that gives you the right to sell the stock at 62. so if you're obligated to buy it at 64 and you have the right to sell it at 62 that's two dollars that is still a defined risk now the only time that that risk may unwound and not be defined is if you don't close out the position prior to expiration and the price falls in between this 62 64 area because one option would expire worthless and the other one would be assigned again trade management we look to close out the trade prior to expiration if if in case it falls in between those strikes all right so we went ahead and we did an example with dao we talked about some of the trade management let's look at a another example is well what if you're slightly bullish and maybe want to be a little more directional on the trade maybe a lower probability but you have an idea of price possibly trading up to a certain level the example that we'll take a look at now is a long call vertical which is another defined risk trade it is a debit so we're going to pay for that option but we also have a greater potential for profit or a greater return on risk at the expense of probability so i'm going to go ahead and bring up another example and if you're enjoying what you're learning here today folks consider clicking like i'm going to go to the trade tab we'll keep an eye open if there's a survey or not today and let's see another example i was looking at earlier and you're welcome to take a look and evaluate it on your own was honeywell which was another example of a short put spread if you were considering something like this uh what do you see you know we see more of a rectangle price hammering at that support could it break down sure we are seeing some relative strength but if the support was hold would hold you know what types of strikes for and out of the money put do you think you may consider based off of what we were evaluating let's go ahead and look at a example of a a long one and one of the ones was looking at two of them one was ea sports the other one was gilead there let's take a look at ea and you know this is a company that had some struggles we can see more of a downward trend there is an earnings event coming up in august we've seen a pretty wild move up over these last three days and we've seen a break of a downward resistance now some traders may look for the price to blow back into that pattern uh if the ideas that the support holds may look for the price to be trading up to some previous highs that could be an idea as far as a slightly directional trade another example we're now this is a weekly chart let me go ahead and go to a daily chart here so you can kind of see that basically consolidation yesterday after it broke out price is trying to trade higher if i look at gild gilead this one hasn't quite broken out now what some traders may do is look to see if prices break through that resistance first we're going to talk more about breakouts and reversals tomorrow and breakouts reversals technically speaking that's going to be at noon tomorrow let's go ahead and take a look at ea sports first since we did have a break and let's say the idea is expectation that the price may be trading up above a previous high here let's say around that 141 level now contrary to the short vertical which was an out of the money spread it was actually below support in the case of a long call vertical this one's going to actually typically be a little more at to in the money and with the short strike essentially being our target we're looking for price to trade through the spread in a long call vertical whereas in our previous example which was out of the money we want the price to stay out of that spread so this one's a little more directional so what we'll do is i believe when i was looking at this earlier was looking at the 64. oh that's gillian there let's look at ea sport uh was looking at the 135 which was just a little in the money and then was targeting the 141 strike which is essentially around this previous high so i'm going to go ahead and bring back up on the trade tab we're on ea i think as far as time frame i was looking at a similar period was looking out into june 31 days now on long spreads we may be willing to give ourselves a little more time in case the price initially falters give an opportunity for price to recover uh also keep in mind with weekly options sometimes there could be some liquidity some larger spreads and as a closer to expiration uh may run out of time uh as far as having a favorable move and goshi spreads widened up uh quite a bit since i was last looking at it we may have to ideally would like to see this spread being no more than 10 of the ask price and here i have a spread of about 90 cents 90 cents versus 67 uh for that one so let's see if we take a look a little closer in where they're 24 days on some of the standardized contracts notice the spreads are a bit tighter here at 24 days i want to give myself more time maybe set a higher target we can go out to 52 days spreads have opened up a little bit here but not as bad as we were looking at previously let's say we go out 52 days and i'll try and simulate this a little bit where we don't have as much of a choice on strikes unfortunately that we do on the weeklies these are five dollar wides so i do have a 140 i have a 145. if i go and look at the chart since we are going out 52 days 145 would take us up to some of those highs from back in november i could take some time obviously for that to occur 50 days may be enough time if the price still has a favorable trend to the upside so i'm going to do is i'm going to come back here and this is probably a little to the further end of days to weeks but we have some limitations here i'm going to go ahead and look at let's say we'll look at this 135 strike i'm going to right click on that and i'm going to do buy vertical by default it's going to buy the 135 and it's going to default to the next higher strike which is 140. now i believe i said was targeting about 145 and what i want you to notice here is the difference between doing a spread versus an individual option if i do this spread that's about four dollars and sixteen cents now if i was just buy a call at that 135 that's costing 8.70

so what i'm doing here is we're reducing the cost of the trade and trading off any gains that would potentially be above 145 since that's our target now i'm going to go ahead and hit the confirm and send bring that up notice we do have a greater return on risk for this example trade risk in 420 to potentially make 580 that's if the price is trading at or above 145 at expiration now we also have a break even which points towards some of the direction of this trade the price is currently trading at 136.72 for it to break even at expiration we have to be at least above 139.20 that's about a buck 50 nope two dollars and 50 cents above where we are right now so it does require some movement not a strong movement but some movement for the price or the trade to be profitable minus any transaction fees so i'm going to go and position size this i'll risk the same 500 so we'll do one contract for this example notice there is a little bit of a spread here so may need to go ahead and adjust this closer to the natural price again your results may vary the more we pay for it does reduce some of the gain because remember that gain and loss cannot exceed that spread in this case it's a 10 wide i'm gonna go in we'll send this through we went ahead and we got a fill and there we go now let's go ahead and go to the monitor tab and as i look at the monitor tab here there's ea there now on the profitability on this one here if we're able to capture about 50 percent of that maximum gain in the case of that debit we may look to scale or close out the trade in fact if there's actually even a very sharp move over a relative period time kind of like that sharp uh counter bull run that we had in march we may close it out if we realize a 30 percent return on risk don't lift a gift horse in the mouth right as far as managing a winning trade so we got two examples in today uh for a swing trade let's go ahead and double check see what we have as far as your questions here and we'll go ahead and we'll wrap things up for today like to thank james for helping out on the chat see crazy foxy says uh so there's a supply and demand dynamic for options uh black shull's price and model for options includes volatility factor which must be where supply and demand comes in well yeah certainly uh supply and demand would be part of that and really pricing in that risk typically if there's more of a risk event coming there's usually a demand for puts and institutions or retailer investors buying puts that would inflate those options and therefore the volatility would have a tendency of rising when there's more complacency and not as much risk then options have a tendency of deflating on calls and puts and likewise volatility has a tendency of being lower so very dynamic there and something to learn as you continue uh exploring the world of options there another consideration is would you consider selling the short leg of the spread at the money to decrease volatility so that's a good question could we go ahead and buy a deeper into money option and sell kind of at the money that would have a similar characteristic as far as probability possibly with a short vertical because now we are in the money the return would be less and it would be less directional so that is an option to do however keep in mind you do have a short option that would be in the money that assignment can occur at any time and may disrupt uh that particular trade but it is an option that one can consider and again similar characteristics what we looked at on that short option so great contributions from everyone do appreciate that and once again thanks for ken for help or uh well thanks for ken for asking some questions and jb uh james for helping out there alright let's take a quick look at the market before we wrap up and looks like as we go into the close and we'll see what the news is tomorrow uh supporting at least what the bias we were taking here today of some support possibly holding bit of a dragonfly doji on spx uh as still negative on the day nasdaq still deeply in negative territory but again trying to trade up at least in the range that had been trading from the previous few weeks russell again a little more of a hammer trying to hold that again trends still down we'll see if the support holds and any of those news events are any supportive catalysts there as we look at the vix uh vix tapering off whoop as we go into the close all right well hopefully you learned something new today folks remember what we focused on today was looking at some of those current market conditions with the expectation on with the examples we looked at at least support holding and in some cases possibly trading up in that range and did define risk spreads to take advantage of that one of them being a short put vertical the other one being a long call vertical short put vertical neutral to bullish bias with benefit of volatility drops the long call vertical a little more directional to the bullish side is mitigated a bit with that one uh not necessarily hurting nor helping with that example but we'll actually see how they play out going into uh next week last thing i was remiss on not mentioning our previous trade i know it was out last week with a sore throat thanks for james for covering down but we did a swing trade on philip 66. i actually did some lousy management on this one although we're still in the trade i haven't really lost too much off of it i guess uh but we came we came within about less than a dime of that targeted exit and did not trigger price did back down forming another flag we are pushing out of that flag right now uh i am going to adjust this stop closer to a break even at least below that low keeping in mind stops are not guaranteed to fill at a particular price once filled they'll compete with other income and market orders but we'll see if we're able to capture that swing high or not otherwise we'll adjust below the low of that day and we'll see how things play out all right folks we encourage practice what you learn here today consider looking at an example of a short put vertical based off of a support bounce or if you're a little more directional considering an example of a long call vertical in your practice trades and remember in order to demonstrate the functionality of the platform we did have to use actual symbols keep in mind td ameritrade does not make recommendations or determinability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility so go ahead and click like folks do appreciate your time as always we'll let you go and enjoy the rest of your day bye now [Music] you

2022-05-25 16:16

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