Trading Long Put Verticals | Long Verticals & Diagonals

good day everyone john mcnichol here and welcome to long verticals and diagonals i know it's been a minute since i've done this class live and i do appreciate my good friends uh supporting me uh over the last couple of weeks uh i've been tied up with some military duty and some other things i believe ben watson covering down uh on this webcast and speaking of covering down we got mr cameron may helping out on the chat today as mr michael fairborne's out today what we're going to do is we're going to focus a little bit on the long put vertical a way of having a defined risk trade to the downside so stick around [Music] all right hey it's great to be live with you once again and for those that are live with us such as uh tony john michael uh marcy phil dillon monique wayne and everyone else there uh too many to mention there but do appreciate you those who join us live each and every week and also those you listen to the archive session as well uh and uh it's great to be with you and uh let's go ahead and take care of disclosures and we'll go right over our agenda folks as we can try and click through here contents intended for educational information purposes only non-investment advice or recommendation of any security strategy or account type options not suitable for all investors spread straddles other multi-leg options strategies often involve greater more complex risk than single leg option trades and may entail substantial transaction costs which important factors should be considered when evaluating any trade make note short options can be assigned at any time regardless of the in the money amount uh likewise that's up to expiration likewise a long call or put option position places the entire cost of the option at risk likewise roll in option strategies entail additional transaction costs all of these are topics that we apply in this webcast uh transaction costs make note of that and also wireless webcast may discuss technical analysis other approaches including fundamental analysis may assert very different views and you're encouraged to practice what you learn here today with tools such as the paper money software keep in mind that application is for educational purposes only and successful virtual trading during one time period does not guarantee success of actual funds during a later time period as market conditions change continuously and there's my bio if you are new to this webcast welcome i do need to point out that this is a strategy centric webcast uh where we focus on basically two strategies one being the long verticals the other one being long diagonals we're going to start off with long verticals and upcoming sessions we'll be discussing diagonals as well we'll not only talk about those basic trades but also manage those on an ongoing basis there so you're encouraged to join us each and every week whether live or on the webcast if you are very new to options i would encourage you to take a look at getting started with options with my good friend barbara armstrong she teaches that uh every week that's accessible via going to the td ameritrade website or on the thinkorswim platform via education and some great references for you is via going to some of the other webcasts once there on the webcast calendar you can go ahead and see some of our other sessions make note of the green webcast those are our getting started series and i believe uh with barbara on the getting started with uh options that's typically i thought it was on a thursday may have been adjusted there a bit unless they've uh changed some of the schedule here here's getting started with options right here bar armstrong tuesdays at 12 pm eastern time likewise cameron's helping out on the chat if i'm going a little over your head on some of the technical analysis he does getting started on mondays some great references to go back to and without further ado let's go ahead and continue with our agenda and as that's coming up there we'll take a quick look at some of the current market conditions here as we go into the end of the week we'll explore some of the fundamental elements of a long put vertical some of the pros and cons with that and we'll demonstrate on how to place an example of a long put vertical on the thinkorswim platform once again we'd encourage you to take some of these topics and practice on your own with the paper money platform all right let's go ahead and continue to bring up the thinkorswim platform there and once again thank you for all the salutations on the chat there we'll keep an eye on there as i know cameron will continue to support all right looking at the s p 500 you know s p 500 you know has been pulling back some traders may look at this as a potential area of support for some reason it looks like i've lost my drawing tools let's see if i can get that back up i think we got it here uh prices have pulled back i got a 55 day moving average we're seeing a little bit of an inside day uh we're uh still uh earlier in the session seeing if this would be continuing going lower or not uh don't see the characteristics of a hold which would support a bullish bounce although some bulls may be anticipating looking for a bounce we're still going to focus on an example of a bearish trade as uh we'll see some examples of stocks that may be showing some of those characteristics as well as we look at the nasdaq nasdaq as well uh pulling back potentially adding area support we actually talked about some of these patterns yesterday in breakout and reversal patterns we're over the near term to intermediate potential question mark for head and shoulders and we can see where the delineation of that potential breakout and reversal may be and we've also looked at it from a longer term which can take some time to develop that are we still looking at a longer term head and shoulders top and formation uh as so far and the week still we got two days left so far this week we are seeing signs of a potential weekly reversal okay hence why someone may consider a bearish position in some areas there okay let's go and pull this back and we'll go and we'll take a look at the russell rut and looking at the russell russell being kind of the weaker uh one on the session down about three days in a row uh much more weaker compared to some of the other indices as looks like we're taking out yesterday's low at this moment okay so kind of mix there with the market uh if we go ahead and take a look at the vix vix for volatility volatility is rising or has been rising that is one of the benefit of typically long option strategies is that they benefit from a rise in volatility now as far as the strategies that you're learning in this webcast the long diagonals would particularly benefit from a rise in volatility the case of the long verticals they're going to be a bit mitigated a bit more neutral or offset since we're dealing with an expiration in the same month so we're not expecting to see volatility necessarily impact those positions however those spreads may have a tendency of being more valuable if volatility rises so by being able to get in on a spread prior to that rise in volatility we may set ourselves up for a greater return on risk all right now i did notice as well we have a survey that popped up and i know this is uh early in the session here folks bear with me for a moment but i do want to point it out to you surveys in the chat and cameron will push it out a few times if you can click on it push it off to the side i would love to get your feedback towards the end of the session uh for those of you that listen in the archive session uh you can actually click like that's an opportunity to let us know that you enjoyed the session and for those of you that are here live you can vote twice by filling out the survey and also clicking like as well and you can do that at any time all right so let's go ahead we reviewed some of those current market conditions let's look at an example uh for a long put vertical and the list that i was just working with was the weekly public watch list there's various public watch lists that one can take a look at to find stocks that are more widely traded whether via indices uh as well as that may have more characteristics when it comes to options in the case of weekly options does provide potential for uh greater selection of expirations uh as well as greater selection of strikes uh keep in mind uh liquidity shorter dated options may have risks as well when it comes to liquidity and that gains can quickly become losses in a relatively short period of time so we'll still factor the principles of price time and volatility a lot of you should already know this acronym from our workshop on options as well some of our other webcasts uh each option strategy is taking a look at and from a a potential profit as well as the risks and particularly mitigating the risks of price time and volatility at least knowing what to expect and we'll apply the same thing with our example here i think the first one i was looking at we'll take a look at ibm okay here's ibm right now if we look at the course of you know the stock from an intermediate to a longer period we can see unlike other stocks uh certainly not close to their highs and really haven't made too much higher highs over the course of the last year and beyond um now we did see more of an intermediate lift off of those lows in february but we're also still potentially seeing some of those lower highs and with price rolling over today we can see prices also you know rolled over and below some of the previous shorter term support so kind of breaking down to the downside now what we'll do is we'll do an example of a defined risk trade utilize and puts uh where we can have an understanding of what how much we're going to risk on the trade based off the spread and we'll also be able to see what our potential profit gain be relative to that risk so by doing that we're going to go ahead and go to the trade tab once we're on the trade tab uh let's take the p or the or correction uh let's start off with time and get an idea of well how far do we want to go out as far as on this spread now this type of trade is slightly directional and so a consideration may be well where do you believe uh the price of the stock to go and how long may it take to get there uh also this is going to be more of a time-based trade as well as a lot of those gains may not be realized until the price moves strongly to the downside and or with the passage of time as there is some time decay in there sometimes that may be positive sometimes it may be a negative okay so with that you know let's say the idea is that the trader may expect the price to be uh going closer around the 125 area uh if they were more directional they may expect it to go down to around 120. so this is kind of where we may focus in on some of those strike prices associated with that and let's say from a matter of time um with typically with a lot of spreads we may be a little shorter dated if we're looking for more of a shorter pop or if we want to give it more time particularly if price goes against us is give a little more time for the price to make that direction okay now another factor in time and i was hoping someone would bring that up santiago says ibm has earnings on 419. let's go ahead and look at the chart and there you go nice feature on the thinkorswim platform if you don't have that expand chart you can go ahead and look a little forward to see when there is an earnings event that's simply going up to the settings on the chart or correction the gear i believe on the chart go to the time access and make sure that expansion area is showing at least in this case we showed 30 days one can go a bit for 30 bars one could go further than that and you may be able to learn some of those tips and tricks from cameron on his getting started with technical analysis on mondays there okay so this may be making more of a mental note uh whether a we can look for a spread that ends prior to earnings or if we go beyond that is a consideration is possibly closing it out if we've realized a profit target before that earnings event okay so here we go uh let's go ahead and uh so with that consideration you have 419 we go to trade tab you know if one wanted to uh you know you can do 14 april but that's only seven days and remember it still takes a little time for the price to make uh that type of move uh we can still go further out in time and what the consideration is uh possibly closing out prior to that earnings event if we choose not to speculate now keep in mind as far as on the weekly options uh one may look at the spreads the difference between the bit and the ass we like to see these to be relatively tighter pointing towards you know volume and open interest which one can also view on the chart or should say on the table and you can see uh some of the volume and open interest may not be as as high on some of the weeklies but another gauge too is looking at the difference between the bid and the ask is seeing if we're able to keep the spread between the bid and ass no more than 10 of that ask price smaller the better now in this case that's about a 20 cent spread versus 38 cents which would be 10 so that would be an area there that may fall within some of those liquidity rules okay let's go ahead and we'll bring up our deltas here and let's say if we were to go out 22 days again that takes us a little bit beyond that earnings there we can go ahead and select an option to uh buy and one of the ideas if we want a little more probability uh we can potentially start off with more of an in the money option if we want to be more directional we may look at being more uh and at the money long and then sell and out of the money option where we believe the price may be trading to now again pros and cons one may have a higher probability less reward for its risk the other one may have a lower probability but potentially higher reward as an example i believe when i was looking at it previously just as a a guesstimate uh i believe a little more of an into money spread maybe to the tune of about 40 to 60 percent uh return on risk uh whereas a more ad to out of the money we may be able to see closer to a hundred percent okay there's a trade-off there uh let's say i think from my example uh let's go ahead and start off with a little more of an into money option here we got a 130 with the 64 delta if i go ahead and buy that we can see that that would be 5.45

times the multiplier which typically will show up although it gets a little truncated usually on the confirm and send here and sometimes it pops up sometimes it doesn't but typically we have a multiplier of a hundred uh for an option and so that uh 545 ends up being 545 dollars now that's just a long option now what are the some of the uh ideas as far as with a long option well we go ahead and do the confirm and send you know we can see that our maximum profit could be significant and that's if the stock goes to zero which is not likely to happen okay uh we do have a defined risk 545. i'm going to go back and edit this and then i'm going to right click we're going to analyze and go and analyze that trade so we'll select analyze and here's an example of a long put now let's make sure since i was doing something beforehand had some previous practice trades here i'm going to go ahead and uncheck those verticals and we'll leave just that single option which is on the bottom here that 130 put and you can see the profitability is to the downside risk to the upside however it's defined you can see when we look at the deltas as far as price we got a negative 62 delta so for a dollar move that would be 62 uh cents uh for every dollar uh on the downside and with the this being and multiply uh by a hundred one of the conso against with long options is that time decay we're losing eight dollars and nine cents a day uh with that and i should say 62.77 is what we make with the 100 uh one dollar move uh in this case uh on the time uh we're seeing a negative eight dollars and nine cents that means we're losing with the passage of time volatility positive so if volatility rises this trade will benefit and that typically will likely to happen between now and earnings so we potentially have the volatility on our side possibly price but the time not so much well what if we go ahead and mitigate that we're not expecting the stock go to zero or possibly not a strong move which a put may benefit from that well what if we just have a price target in mind what we can do is we can sell an option at that level where we may expect the price to be whether going into earnings or at expiration in this example and define the risk a little bit more we're going to reduce the cost of the trade and we're also going to mitigate some of the risks with for instance time let's see how we do that so i'm going to go back we're going to go back and i'm going to delete out some of these previous ones here leave that long option in fact i'll delete that other one there too we'll go back to the trade tab there's that single option we're going to go ahead and take a look at a strike where we believe the price may be trading at or near let's say we started with the 125 and another attraction with weeklies compared to some of the standard contracts is notice on looking at 43 days out we have five dollar wides when we look at some of the weeklies we'll notice that one may see multiple strikes so we get more of a wider selection there so let's say we were targeting around the 125 mark well since we already have that long option i'm going to hold the ctrl key and we're going to sell the 125 by holding control key that's going to marry up with that long option uh another way of doing this trade so we got a five dollar wide here costing about 239 another way of constructing this is i can go ahead and right click on one of the options and i think we're looking at the 130 can right click and do buy vertical and by buy vertical it's going to go ahead and buy the 130 which is the one that we selected however it's going to default to the very next strike so here what we'll do is we'll go ahead and change that strike to the one that we're looking at which was 125 and there we go so notice pro this strategy will reduce the cost of the trade we're now at 236 versus five something we hit confirm and send much like the long put itself the max loss is going to be what we pay for that in this case 2.36 here's the maximum gain the maximum gain is 264. now since this

one's a little more shorter dated um and we're not too far out of the money this one actually has a reasonable return on risk another pro the strategy is to break even 127.64 if the price stays below 120 764 at expiration this would potentially be a profitable trade minus any transaction fees why because right now the stock is at 127.25 we're actually about uh 40 cents almost 40 cents below where the break even is so this is where that little more of a higher probability comes into play not necessarily high but if the price stays below that level we have a profitable trade that's unlike a long option where you start off a little more in the hole let's go ahead and edit this and let's go ahead and analyze the trade and see how the dynamics of the trade changed where you can see the profits to the upside the losses to the downside but notice the risk is defined to the downside as well as we are given up and this is a potential con we are giving up significant or unlimited gains in the case of a call uh to the uh with with a long option because we're willing to give up some of those gains to reduce the cost of the trade and also benefit some other ways such as time look at this we're actually positive time decay that's reflective of that higher break even so if the stock does nothing this trade benefits from the passage time however not significant okay now no stated volatility volatility is kind of a non-issue at this point because it's kind of neutralized whether to the upper to the downside now that can change if the prices move it can have an impact but not as significant when it comes to like a diagonal or with a single long option okay and then notice there's our direction which is slightly less directional our delta is still negative but not as have a higher number okay now let's go ahead and position size this to a maximum loss i'm going to right click we'll do a confirm and send and what we can do is let's say we wanted to risk 500 on the trade i'll go and pose a question to the class if we're willing to risk let's say a thousand dollars on this trade how many contracts or spreads can we do here we're willing to risk a thousand dollars how many spreads can we do and if you're practicing this on your own think about how much you're willing to risk in a trade and considering what how many contracts uh you would do and you can practice this on your paper money and there may be some answers already coming through i know we have a bit of a lag but if we take that thousand divided by 235 i believe that should come out to be about four contracts so let's go ahead and change that to four spreads thank you juanita so now when we do the confirm and send we can see that set up risk in 940 our maximum profit would be 1060 that maximum gain would be realized if we are trading at or below 125 at expiration now we are going to look at some profit management if we're able to capture about fifty percent of this maximum gain in that case that would be about five hundred dollars then the consideration is to possibly scale or close out the trade uh some traders if they have a dramatic drop in a very short term you know may look to take the money and run you know if they have a significant gain over a relatively short period of time let's say 30 percent okay so a few things to consider i'm going to go ahead and we'll send this one through and we did get a practice trade we got that filled and we'll go ahead and we'll manage that on an ongoing basis let's go ahead and take a look take a look at another example as well i do want to make sure we're also addressing your questions here today once again it's great to be back and remember we do have that survey cameron will be pushing that out several times there so let's show we give that feedback and likewise those you listen in the archive session click and like would be helpful as well and just one point out while i'm here it's actually down on the bottom of the screen there you'll see a subscribe link for trader talks so if you like this content you can subscribe to trader talks and be informed uh of some of our updated uh sessions uh live as well as going back and looking at some archive sessions there okay and uh looking at looks like cameron's kind of addressed uh some of the uh concerns there as far as and we'll we'll table that one off that's a little more of a one-off there all right let's go ahead and do another example and then we'll take a look at some existing positions on managing them we'll bring this up i think another one where i was looking at let's see here bear with me for a moment we're looking at alcoa a lot of these uh metals companies uh alcoa is in the aluminum area let's go and bring that up have made some significant moves uh over the last year uh interesting you go back not too far the lows of uh 2020. alcohol is trading at five dollars and sixteen cents uh not not only a ten bag or almost a twenty bagger uh at this point now there is an earnings event coming out on this one as well around the same time on 418 kind of kicking off around the earnings season again we can see a bit of a resistance up around this area here now some traders may still be bullish and looking for prices to break out let's say a trader just expects that the price may be drifting down or kind of staying more in a range over the near term now this could be another example of a put a put vertical now i was looking at some of the questions there daniel says do you use stops for the trade now notice when we had did our example when we had done our example we had basically position size to a maximum loss we had defined our risk before we had placed the trade now if one wanted to could you go ahead and say if the price goes above or below a certain level to go ahead and close out that spread uh absolutely um however keep in mind uh when one does that uh you may not be given the patience uh as far as time uh where a trade that can be unprofitable at some point can move into profitability at another point of that duration so you can go ahead and consider those types of options however with our examples we position size each of our trades to a maximum loss and therefore had managed the trade on an ongoing basis versus utilizing a stop okay but that's entirely up to you keep in mind stops are not guaranteed to fill at a particular price once triggered they will compete with other income and market orders all right so looking at alcoa let's do the same thing when i was looking at it previously this one was a little further out uh actually not quite further out it was 13 may well further out than one we were looking at uh 13 may and let's go ahead and look at those options now 13 may would be 36 days out this would actually be going past the earnings now whether one would speculate go in that earnings event we're going to go ahead and do that for our example unless we hit a profit target beforehand uh we'll go ahead and take a look at an in the money option again uh here we got a 91 strike if i go ahead and click buy that would be a single option and just like we had saw before uh the pro the cons against a long option is you have the time decay and that time decay can be significant it is directional to the downside and we still have a defined risk to the upside if we already have a price target in mind again we can reduce the net cost of the trade we can reduce the impact of that time decay so let's go ahead and do that again minimize that looking at the chart let's say the expectation is that price may be trading closer around that uh eighty dollar level so we'll go to the trade tab look at the eighty dollar level and this is a little further out of the money i'm going to hold the control key and i'm going to hit sell so we basically married up that option notices a little more of an expensive spread we are targeting that 80 level if i go and do a confirm and send i'll pose the same question if we were willing to risk about a thousand dollars into trade how many contracts can we do i know some of you may be typing that in i know we have a little bit of a lag but if you take one thousand divided by six ten looks like that would only be one contract okay we're close 1200 or 1220 would be at risk if we did two spreads but typically the idea is to round down not to be over leveraged uh so we'll go ahead and we'll stick with the one notice again another benefit of this trade 8490. the break even uh is actually 70 cents above the current price so that would imply when we look at the risk profile that we're probably going to be positive time decay or at least close to it so i'm going to go ahead and edit this we're going to right click analyze the trade let's go ahead and remove that single option and you can see right now we pretty much almost negated uh that time decay and now probably move positive with the passage of time there's our defined risk there's our defined game we do a confirm and send right click confirm and send notice the return on risk on this one is not as great i think that's closer to about 80 percent what we can do is we can take the 490 divided by 610.

we'll go up here to the upper right we'll bring up a calculator 490 divided by 610 that'd be about an 80 percent uh return on risk that's about right okay uh when you go ahead and take a look uh some of you that looking at probabilities although not the biggest attraction uh with this trade see if i can analyze that again bring that up i have my mouse causing a little hiccup here let's try that again if i come up here i can go ahead and create set slices next to the plus sign set slices to break even for that may expiration there's that 8490 breakeven that we were looking at uh looks like based off the probability this would be about a 55 probability of a profitable trade assuming all things stay the same okay so a little bit of an edge there well looks like i have two trades on here uh that shouldn't impact that should be the same probability all right okay well hopefully we're learning something new today folks as we've reviewed some of our current market conditions and we've explored some of the fundamental elements of a long put vertical we've also demonstrated on place in those trades what i'd like to spend a few moments on is look at some previous trades and talk about some of that profit management and closing out the trades prior to expiration uh because keep in mind we do have a long option that is typically in the money and if that option is held going in expiration and is still in the money that would result in an exercise okay the assumption is you'd want to exercise that for stock if you do not wish to have that exercise we need to close that spread prior to that expiration okay now if the prices trade through the spread uh you'll have an in the money option uh that was short and an in the money option that was long they will have a tendency of offsetting however that's not guaranteed so therefore some trade management prior to expiration uh would probably be an order so let's go ahead and bring up that thinkorswim platform we'll go to the monitor tab and got a few different verticals here some of these were done uh in this class others were done uh if you catch me on swing trading and even breakout and reversals we'll do a lot of uh both calls and put spreads being a little more directional also from our option strategies workshop uh the advanced option strategies which i did last month i believe towards the end of this month i'll be doing an option strategies workshop and you're encouraged to join us for that that's going to be via the live events tab under education go to events once there you can see some of our upcoming sessions we do have an advanced option strategy session going on this week just finishing up with ben watson in fact i would encourage you to go to this one tonight if you're not familiar with diagonal spreads that's going to be the last strategy that'll talk that'll set you up for next week and some of our upcoming sessions when we do talk about them uh when you catch it around again also talk about long verticals on that session one if some of these strategies are a little over your head we do have the option strategies workshop these are live in the evening and yours truly will be teaching this at the end of the month so looking forward to that all right so let's go ahead and bring up our existing trades we were talking about uh some puts so here's two examples of long uh make sure i got the right ones yep long put verticals where we had astrazeneca where we had bought a 55 and sold to 52. so based off of that information what was the expectation of price for astrazeneca prior to that 14 april expiration where did was the expectation for price to go yeah looking for that price to go uh to go down and actually sounds a little off here trying to see what happened here that's interesting um we got seven days left and if we go ahead and take a look at astrazeneca part of this may have been tied to possibly volatility uh trying to do my math in my head i thought maybe this may have been a short up this actually is a short put vertical so i stand corrected i had a short put vertical slipped this way in there this is actually a bullish trade was expected for price to stay above 55. now that math makes sense uh this is a strategy taught by ken rose uh in another class here so if it says a long put vertical we want it to stay below 52 but this is a short put vertical actually wanted to stay above 55. so this option options out of money and this will actually potentially expire worthless being well above that and this one realizing a maximum gain let's see if i got a another example that may be a little bit better here and skyworks is a long put vertical where we had bought the more expensive option and sold the cheaper option and kind of a way of kind of a way of determining if this is a long or short and i probably should have done this at the beginning is there's your long option there's your short option with the negative number what you do is just point from the long to the short option and look at the strike and see if that price is going up or down in this case going from the long to the short 5250 to 55 is going up in price that is a bullish strategy whereas when i go ahead and take a look at skyworks and i look at the long option which is 135 the short options 125 i go from the long to the short option 135 to 125 is going down that is a bearish trade and guess what folks uh if you didn't know that trick that's something you can apply to any uh spread a long uh taking a look at a a long vertical as well as a short vertical going from the long to the short strike will imply the direction of that trade so a little tip for you there all right so we're seven days of expiration so as far as closing out the trade one is consider your profit target now this is an extreme example because uh we're at about 100 percent of that maximum gain or at least a 100 percent of the return on risk there can still be some gain on that we were targeting about 50 percent so if this happens at any time one consideration may be to scale out of the trade although we only had one contract so there's nothing to scale out of uh if um [Music] if you realized the gain you expect you can simply go ahead and right click and close out the trade by right click and create a closing order all right now the other consideration is well what if you did not reach your profit target then we need to factor in time and usually that time factor is once we get into that 10 day window 10 to 7 days usually no less than 4 around this area here is consider in closing out the trade for a gain or if it's at a loss limit in that potential loss so that's kind of our active trade management there now as we go ahead and we take a look at the stock in the case of uh sky works do i type that in right sky works you know right now we're trading at 120. you know one may allow this to potentially continue trading lower although there's not much to gain on that if we go ahead and right click on that and do create a close in order this is a ten dollar wide a ten dollar wide spread can only be worth ten dollars so it's worth nine dollars and seven cents so there's only about 83 cents to gain now some traders say why should i risk nine dollars to make another 87 cents doesn't sound too practical so that could be the opportunity to close out this trade now as we had closer expiration there may be a little bit of a wider spread you may not be able to capitalize on that your results may vary we'll attempt to close this out at the mid and there we go now also if we have an example on the losing side that's a diagonal which is on a losing side we'll talk more about that in another time we got american express well here's abercrombie and fitch here's an example of a a put spread and again how do we know if this is a long or a short go from the long to the short strike 32 to 26 that's going down in price so that's a long put vertical notice this down about 22 percent okay uh we'd like to see the price to be at or below 26. right now it's trading at 32. what's the probability of the stock

trading below 26 in the next seven days anf bring that up and here's 26 there not a high probability it can happen so this could be an opportunity to limit the losses uh we haven't reached our target we're kind of getting closer to expiration right click create close and order and we can at least live to fight another day i'll attempt to close that out all right well there you go folks uh we got through some few examples uh hopefully you also learned another quick trick uh when it comes to terminant as i was briefly confused uh i probably need to run upstairs and get a cup of coffee i did not get my caffeine today so hopefully you'll give me a buy on that as today we went ahead and looked at some of those current market conditions things are kind of mixed but we looked at examples of a defined risk bearish trade uh with two practice trades that we did by demonstrating that long put vertical we also talked about potential exits on closing out those positions based off of reaching a particular profit target uh as well as if we have not reached that consider in time and in that last week of expiration considering closing out that position for a minimum gain or a loss in that matter there uh it's great to be back i'd like to thank cameron for helping out on the chat let's get that survey filled out folks uh i believe cameron's pushing out one more time there once again appreciate the support those are that are listening in the archive session go ahead and click like and for those of you that filling out the survey appreciate if you can do both of them uh as well uh practice what you learn folks translate that knowledge into wisdom and remember in order to demonstrate the function out of the platform we had to use actual symbols keep in mind td ameritrade does not make recommendations or determine suitability of any security or strategy for individual traders any investment you make in your self-directed account is solely your responsibility have a great day folks and a great weekend we'll talk to you again real soon bye now [Music]

2022-04-10 02:59

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