STRATEGIES CHECKLIST

Strategies Checklist

v All of the strategies listed here are defined risk

trades. Your profit and loss will be defined from
the start.
v Use this guide in conjunction with your trading
plan

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 Buying Options

v Low IV Rank
v More than 45 DTE
v Greater than .70 Delta

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 Vertical Spread Cheat Sheet
Spreadtacular!
Bullish Bearish

Call Debit Spread Call Credit Spread

CALL CALL
Buy an ITM Call + Sell an OTM Call Sell OTM call + Buy OTM call at higher strike price.
Reduces cost basis, lowers break even Caps Losses, Lowers BP Reduction

Bearish Bullish
Put Debit Spread Put Credit Spread

PUT
Buy ITM Put + Sell OTM Put
Reduces Cost Basis, Raises breakeven
Sell OTM Put + Buy OTM Put at lower strike price
Caps Losses, Lowers BP Reduction
PUT
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 Call Debit Spread Checklist

v Low IV Rank + Bullish Prediction

v Gauge Your Expiration
v Buy 1st ITM Call + Sell OTM Calls
v For a low risk trade, sell the 1st higher call
v If you have higher price targets, cascade into
the higher strike prices.

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 Put Debit Spread Checklist

v Low IV Rank + Bearish Prediction

v Gauge Your Price Target to Expiration
v Buy 1st ITM Put+ Sell OTM Puts
v For a low risk trade, sell the 1st lower put
v If you have lower price targets, cascade into the
lower strike prices.

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 Call Credit Spread Checklist

v IV Rank Above 40 + Bearish or Nuetral

v Analyze Risk
v Sell OTM Call + Buy Higher OTM Call
v Looking for between 2:1 to 4:1 Risk/Reward
v Widen the strikes to reduce the amount of
contracts bought and increase RoC.

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 Put Credit Spread Checklist

v High IV Rank + Bullish or Neutral

v Analyze Risk
v Buy OTM Put+ Sell Lower OTM Put
v Looking for between 2:1 to 4:1 Risk/Reward
v Widen the strike to reduce the amount of
contracts bought

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 Iron Condor Checklist

v High IV Rank + Neutral Prediction

v Analyze Risk w/ IC Chart
v Sell Put & Call Spread
v Looking for between 2:1 to 4:1 Risk/Reward
v Widen the strikes to reduce the amount of
contracts bought and increase credit received

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 Calendar Spread Checklist

v Low IV Rank
v Sell Front Month + Buy Back Month
v Neutral Strat = Buy ATM Calls or Puts
v Bullish = OTM Calls
v Bearish = OTM Puts
v Close the position when the Front Month
expires or when 50% of profit has been made.
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 Covered Call Checklist

v Neutral to Slightly Bullish Prediction

v A substitute for buying stock outright
v Buy Stock + Sell 1SD OTM Calls.
v Decreases Cost Basis + Increase Prob of
Success

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