Long Put Verticals (10 of 12) | Getting Started with Options | 7-9-24

Getting Started with Options | Barbara Armstrong | 7-9-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
In this webcast, we introduced the Long Put Vertical Strategy. We discussed what this strategy is, how to create it and why a trader might consider using this strategy. We discussed an example trading plan and some of the components that a trader might want to include. We also placed an example trade on the thinkorswim paperMoney platform.
You’ve learned that you can buy and sell options for different purposes. In this last of four vertical options strategies episodes, you’ll learn how to combine option selling and buying strategies to create different, risk-defined strategies, that offer a variety of potential risks, rewards, and probabilities of success. Long put vertical spreads are a bearish strategy used to potentially generate income or growth in investment portfolios.
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.
To follow Barbara Armstrong on X: @BarbArmstrongCS
(Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.):
1 MO: tos.mx/RyY3kRp
3 MO: tos.mx/O0nGkGY
6 MO: tos.mx/LTe5nkk
New to Options? Starting Here! Getting Started with Options: The Basics: ua-cam.com/users/liveyl1kLPGA...
Trading A Smaller Account: The Psychology of Trading, Position Sizing and Trade Management: ua-cam.com/users/live4rZhakVQ...
Trade Management Mini Sessions: • Trade Management Mini ...
Here's the link to the new Schwab coaching calendar: www.schwab.com/schwab-coaching
Link to the Trader Talks Webcasts from Schwab Coaching on UA-cam: / @tradertalkswebcasts
#barbaraarmstrong #TraderTalks #SchwabCoaching

[@richardjudge2322]

Thank You Barbara.

[@tradertalkswebcasts]

You're welcome. Thanks for continuing to watch these webcasts. ^Barb

[@thomasherrill4357]

thank you

[@tradertalkswebcasts]

You're welcome. ^Barb

[@unawant1]

Hi Barb, with the LPV, do we want the price of the stock to remain above the short strike or in between both strikes to avoid assignment?

[@tradertalkswebcasts]

Good question. Ideally, to achieve a max gain, we want to strike to be BELOW both strikes for a LPV and stay there. This means that the risk of assignment is perhaps higher. However, if assigned, the trader might just choose to exercise the long put and sell the shares. That would achieve max gain. Not a bad thing I would say. ^Barb