Go to http://ExpertOptionTrading.com/videos for more free videos on What Is Option Trading The market has been really good to us. We're only 2 days away from expiration. Let's go take a look at the expiration on the IWMs. We just have a couple of positions left. We only have 2 trading days left on these May options. We got into a couple of these positions a little bit later than we should have. The white line has not met our expiration yet. We're still looking really good. Our zero line is down here. We took $800 in profit yesterday. I just want to show you the closing out of a couple of these positions. This is our current portfolio. We closed on our Diamond position and our SPY position. If we take a look at the individual symbols, I've also pared back a little bit on the IWMs, and this is what we have left. We have been up... We were up $800 yesterday. We have almost $200, $300 profit on this position here. We may go back down a little bit on the price. Remember, the last week of expiration, especially with 2 days left - price is the biggest risk that you have. We have $50 in profit today. Let's just take a quick look at our monitor and numbers here. We still have $25 in Theta available in this position, if we continue to hold it. We have maybe $130 in profit that we could extract out of this position, as long as we hold our price here. If not, then in order for us to extract $283 in profit, we could probably go down into here, and still be okay. But why bother? Especially with 2 option days left. We might as well close this position out and take our profits. We could do something else here, with just 2 days left, and that is to buy a put on the IWM. If we want to take a maximum profit, a maximum profit in this position is going to be about $500. If we wanted to buy insurance, so that this does not go against us dramatically to the downside, we could go in and purchase an IWM May put. We don't want to buy too much time premium, so let's say we buy one of the 75s, which will be worth 2 at expiration. If we buy a single here, and then analyze this - what that does is that gives us a little more downside profits, just in case we do start to trade down a little bit further. How much is that going to cost us? Let's take a look. Just one of those is going to cost us $146. We're going to buy $146 insurance, to capture possibly another $146 in profit. Maybe close to $200 in profit. Is it worth it? With the extra commissions, maybe not. Let's say we just close out our current position. We will have generated $280. If we add the cost of the insurance to that, which is 146 for that one put position, that is $426. The max that we can get out of this is 504, so we would make an additional $70 if we bought the insurance. Is it worth it? I don't know. Maybe, maybe not. For more What Is Option Trading videos be sure to check out our channel: http://www.youtube.com/user/howtotradeoptions To learn more about the Expert Option Trading course go to: http://ExpertOptionTrading.com Additional Tags ================ vertical spreads, options greeks, what is options trading, option volatility, option spreads, options volatility, how to trade in options, option strategies, index options, equity options, virtual trading, options spreads, virtual options trading, options trading tutorial, option trading strategy, options trading course, how to trade stock options, options trading systems, options training, learning options, learn to trade options, option trading tutorial, options trading strategy, option trading course, option trading systems, options trading basics, option trading basics, option trading system, options trading courses, options trading training, trade options, what is a stock option, options strategies
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