Table of Contents

CHAPTER 1 – PUT (OR CALL) VERTICAL TIME SPREADS (A.K.A $5 X $15) 

Section 1 – Introduction 
Section 2 – Spread construction 
Section 1 – Case Study: Vertical Time Spread

CHAPTER 2 – VERTICAL TIME SPREAD CRITERIA 

Section 1 – Step 1 Decide your reasons to trade vertical time spread  Section 2 – Step 2 Choose a time frame of the longer term vertical spread
Section 3 – Step 3 Estimate market movement
Section 4 – Step 4 Pick the width of the Long Spread
Section 5 – Step 5 Pull up an option chain
Section 6 – Step 6 Start selecting the Long Spread
Section 7 – Step 7 Analyze the spread width
Section 8 – Step 8 Pick front month expiration
Section 9 – Step 9 Consider selling both option in step 8 for aggressive approach
Section 10 – Step 10 Consider which one best suits your opinion
Section 11 – Step 11 Narrow your choice
Section 12 – Step 12 Consider margin and contract sizes
Section 13 – Step 13 Decide purpose of the vertical time spread
Section 14 – Step 14 Decide contract size
Section 15 – Step 15 Enter your order
Section 16 – Step 16 Manage trade 

CHAPTER 3 – VERTICAL TIME SPREAD EXAMPLE

Section 1 – Trade 001 – 15 SPX Jan W1
Section 2 – Trade 061 – 15 SPX Billy Baroo

CHAPTER 4 – BONUS EARLY EXERCISE OF EQUITY OPTION

Section 1 – Early Call Assignment
Section 2 – Early Put Assignment
Section 3 – What if I am Assigned on my Short Call in a Conversion?
Section 4 – What if I am Assigned on my Short Put in a Reversal? 
Section 5 – Early exercise of a Long Vertical Call Spread
Section 6 – Early exercise of a Long Vertical Put Spread
Section 7 – Short Vertical Call Spreads and Early Exercise
Section 8 – Up Market Following a Short Call Vertical Exercise
Section 9 – Down Market Following a Short Call Vertical Exercise
Section 10 – Flat Market Following a Short Call Vertical Exercise

CHAPTER 5 – BONUS PORTFOLIO MANAGEMENT

Section 1 – Practical Application
Section 2 – Managing the Greek: An Overview
Section 3 – Understanding Your Positions
Section 4 – Portfolio Management Conclusion 

CHAPTER 7 – APPENDIX

Section 1 – Profit & Loss Management
Section 2 – Money Management
Section 3 – Terminology 
Section 4 – Type of Orders