Day 1 Morning – 9:30AM

• Introduction Market Basics - Understanding the importance of direction even in "Directionless Spread Trades"
• Demonstrate the basic indicators needed for Spread Trading
• Timeframes/Timeperiods to use when selling
• Review of Options Understanding the different obligations between buying and selling an option

  Afternoon

• Understanding the Greeks
• The basic spread trade concept:
• Credit Spreads vs Debit Spreads
• Using the TOS Analyze Tab to analyze the difference
• Understanding margins and how they apply to spreads

GOALS - by the end of the day you will

• Paper trade one spread then review it over the next few days
• Know the timeframes involved spread trading
• Know your responsibilities when selling
• Have a better understanding of the Greeks and how they apply to options
• Know the difference between Credit Spreads vs Debit Spreads
• Know how to use TOS analyze feature to see the spreads
• Know how to quickly calculate margin

Day 2 Morning – 9:30AM

• Review Day 1
• Review trade using the Analyze tab for the Greeks and to quickly determine if you are at risk in a spread
• Review how to calculate profit and margin
• Review Bull Put Spread and Bear Call Spread

  Afternoon

• Key time periods to watch for possible spread trades
• Implied Volatility and how that effects options pricing
• Which spreads to use: Bull Put or Bear Call,
• legging - in to a spread
• Learn Warren Buffets "No Cost Trade Strategy"
• How to manage a spread when it goes against you
• Select candidates for the morning 

GOALS - by the end of the day you will

• Review the trade that was established in Day 1
• Demonstrate your knowledge in margins
• Demonstrate your understanding of Credit Spreads vs Debit Spreads
• Know how to set spread profit goals and take profit at the right time
• Know how to manage a spread when it goes against you
• Demonstrate your ability to pick stocks to place spreads
• Demonstrate your ability to manage a spread

Day 3 Morning Starts at 9:00AM

Live Trading - Review and Apply what was learned. We will select several stock options and make trades during class.

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