Good stuff! Thanks so much for sharing. I wish for you continued success! ^Barb

I'm glad you found these webcasts too. So happy to hear that you are finding them helpful!! ^Barb

With a credit spread, it is based on the theoretical max loss of the trade. ^Barb

Glad it was helpful! ^BM

You could certainly do that. Set these trades up in your paperMoney account and see how they work out. ^Barb

My pleasure! ^BW

Hi Blackhawk. One common way to add a stop loss is to do a right mouse click/create closing order/Sell (the position). Now on the Order Entry screen you could change the limit order to the desired stop type. You have four choices. Many will also change the time in force to GTC so they don't have to set it up every day. Hit Confirm and send. ^CH

There may be some changes to the webcast schedule at the beginning of 2025. Stay tuned. Those will be announced at the end of the year. You can always see the current schedule by going to: www.schwab.com/coaching. I will also post it on my X feed: @BarbArmstrongCS ^Barb

There is not a lot of difference between the two. When you compare (with equal strikes) the reward/risk is typically almost the same and the Greeks are similar. So it really comes down to being ITM or OTM. OTM have lower chance of early assignment and often better bid/ask spreads. ^BM

Am I correct in thinking I wouldn't get less than $2735 less any charges? $346 - $300 = 46 x 100 = $4600 $4600 - $1865 = $2735 PS. I'm not a bot 🙂

Glad you enjoyed it. ^BM

The strikes we chose for these 2 strategies are based on the example trading plans. With the Long Call Vertical Strategy, we tend to choose strikes that bracket the current price of the stock which makes the trade less directional. The Short Put Verticals strikes are selected based on recent support levels where the goal is for the short strike to be below the support level. Although delta can be a consideration, it is not the primary driver in choosing the strike prices. ^Barb

Happy to help! ^CH

My pleasure! ^CM

You're welcome ^KH

You're welcome. ^Barb

It is called Trading a Smaller Account. We meet live on Mondays and Fridays at noon ET. You are welcome to join us live. Here's the link to the playlist: kzbin.info/aero/PL8a6s5nq1lPTl4QH-h71y1Z5KEePqtVgy&si=L1LuPifNYhHZgzge ^Barb

Excellent class BA!

Glad it was helpful! ^Barb

Thomas, I understand your confusion. Covered Calls and Buy Write Covered calls can be used for a number of different purposes. I will discuss this in more detail in Trading a Smaller Account on November 22. However, if you are trying to trade the trend, one way that some traders might use a buy write covered call is to enter this trade with the GOAL of being called out. Essentially, doing a swing trade and being paid (via the covered call) to sell the stock after a short period of time. There are times when the stock might go quite a distance past the sold strike. As I have often said, there is to be no 'moaning and groaning' about how much more the trader might have made. The idea being that the goal is to be called out and end up with a return (which although capped) is deemed satisfactory. The expectation is that the stock will be trading above the sold strike by expiration. In other words, some traders might use this as a short term growth or income generating strategy. If the trader's goal is to buy the stock and hold it for a long period of time, the buy write covered call or selling a covered call is likely not an appropriate strategy. I hope this makes sense. If not, ask me another question and I'll provide further clarification. ^Barb

@@tradertalkswebcasts I guess my confusion is, if the value of the stock goes up, it seems many times, as in the case with BAC the value of the covered call went down, and subtracted from the net profits of the long stock trade. ( 701.27 stock profit) - (covered call decrease -314.50) = $386.77. In this case we surrendered 314.50 of profit. Am I wrong to look at it this way?

@@thomasdunlap4401 Unless the ending stock price was higher than the covered call, you can keep both the stock's advance profit and the call premium. If the stock's price does pierce the call, the stock will be called away (assuming you already owned the shares and not synthetic), but you will keep BOTH the stock's profit and call credit as well. If you do this on purpose it's called a buy-write covered call (short-term profit generator). If you buy certain company stocks by the x-dividend date; you can arrange a buy-write to collect potential stock advance, call premium, and dividend all at once (must buy blocks of 100 shares at least).