How To Trade A Long Put Vertical
Channel: NavigationTrading
Date: 2017-05-23

How To Trade A Long Put Vertical

The Long Put Vertical is one of the core strategies that we trade at NavigationTrading.

The Long Put Vertical is a great strategy to trade in periods of Low Implied Volatility. Since they require a relatively small amount of capital, they can be traded in virtually any size account.

In this video, we will walk you through how to:
1.  Evaluate Implied Volatility
2.  Find an underlying symbol to trade
3.  Locate the correct strikes to trade
4.  Analyze the trade
5.  Place the trade

Here’s the metrics we look for when trading Long Put Vertical:
-  Market Assumption – Bearish
-  Implied Volatility – Low
-  Trade Setup: Buy one ITM Put; Sell One OTM Put
-  Profit Target – 25-50%
-  Downside risk – None
-  Upside risk – Amount of Debit Paid at Entry
-  Probability of Profit – Approximately 50%
-  Time Decay (Theta) can be positive when price is lower than 
   break-even point
-  Time Decay (Theta) can be negative when price is higher than 
   break-even point

Want the full step-by-step details on how to trade options? Click below to learn more.

https://www.navigationtrading.com/trading-options-for-income/

Have you tried our 2 week trial of NavigationALERTS? Click below to learn more.

https://www.navigationtrading.com/navigationalerts-2weektrial/

Also, don’t forget to join us every Monday morning at 8:25am CST, where we broadcast our “Trade of the Week” LIVE from our Facebook page and YouTube channel

At NavigationTrading we consider it a privilege to be your guide on this exciting journey.

Happy Trading!

The NavigationTrading Team
https://www.navigationtrading.com
info@navigationtrading.com