Full Example
Options Order Entry
Ticker: SPY
Strike: 545
Calls or Puts: Puts (going “short”)
Action: Buy to open (BUY), or Sell to close (SELL)
Order: Market (I trade market orders, not limit orders)
Quantity: Size you are trading.
FOR EXAMPLE: If 1.83 is the premium of ONE contract, meaning the value is currently $183 (1.83 x 100) for one PUT contract of SPY. Value/premium of the contract will show in on order screen AND entry chart right axis.
If after buying this Put, the SPY goes DOWN in price, the value of the contract will go UP. Calls are opposite: Call options will go UP in value when SPY goes UP in price. (This can get confusing for beginners, so read that a few times).
Stock Chart - 544.83 Short Level
Here we see the price moves up towards a level above it (resistance), so I went short here by buying puts on as the price of SPY entered the green area of the Trade Box.
1, 3, 5 show ideal entry areas (for a short)
2, 4, 6, 7 show ideal exits (for a short)
Options Chart - 545 Puts
Notice the charts are opposite of each other? Use the time at bottom of charts AND the numbers 1-7 highlighted to reference this.
That’s because the OPTIONS CHART is for a PUT, which INCREASES in value when the underlying asset (SPY) goes DOWN in price. Read that again…
Here, I take the first test of entry area with my “starter size” and pay out nicely on the first move.