Trading Strategies For Stock And Options Combination Trades

By trading a method made up of a combination of stock and option trading strategies, the risk reward and overall profitability can be increased for the stock trades, as well as for short options trades.

Options Trading Strategy For Locking In Current Profits

Risk reward evaluation and options trading math can be used for locking option trade profits, where you are protecting your existing profits and giveback, while allowing for increased trade potential.

Call And Put Options Spreads Trading Math

The trading math for call and put options vertical spreads is first determined by the spread strike width, and whether it is long or short. Since these are covered spreads, the maximum loss will be the strike width minus the debit paid or the credit received.

Options Trading Math To Expiration For Calls And Puts

This options trading video discusses 4 trade types: (1) call buy (2) put buy (3) call short (4) put short. The spreadsheet profit graph is used to show the trade math to expiration and the risk-reward of each of these trades.