1. Find an opportunity in stocks that could move up at a specific target date. Best if you can predict roughly the target price. 2. Make sure if stock has options to trade on. 3. If you are a beginner, look at options with 60 to 90 days options months. LEAPS options are ok but [...]
In this tutorial, I will show you how to draw a correct risk graph for a Bull Call Spread trade. Before we can draw a risk graph we need some information such as: Options Strike Price Price of Purchased Options Max Risk, Max Reward Breakeven point is optional to draw a graph but good to [...]
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