Scope

• • In this drill #4, we will learn about the option strategies that are suitable for small value accounts.
  • Most investors start small, so it is important to know which strategies are appropriate for small sized accounts

Homework

Execute these trades

• • Sell a put spread
  • Sell a call spread
  • Do these in the paper trading account

Share the trade and following with me:

• • Max risk if both the legs of the spread expires ITM
  • Max profit if both the legs of the spread expires OTM and ROI in that case
  • What will you do if on the expiration day, before end of trading time, the short leg is ITM and long leg is OTM

Due date for homework : May 14,2024