LEARN HOME / WORKSHEETS
Two worksheets
Use these pages to practise the questions. A complete sheet does not make a trade suitable. A blank or uncertain answer means stop and verify.
Before you place an order
| Illustration or dated example label | |
| Underlying and current reference price | |
| Expiry and strike | |
| Strike passes the 30% distance rule? | |
| Premium, bid/ask spread, open interest, volume | |
| Known event before planned exit? | |
| Cash reserve for 100 shares | |
| Break-even before costs | |
| Fees, FX, tax, and broker-rule checks | |
| Concentration and correlated exposure | |
| Assignment plan | |
| Reason to reject or proceed to further review |
Daily review journal
| Date and time checked | |
| Short contract and remaining quantity | |
| Actual opening fill and opening credit | |
| Working close order and state | |
| Current bid/ask and relevant event | |
| Available cash and assignment exposure | |
| Reason to hold, close, or seek review | |
| Actual closing fill and result, if closed |
Practice rule
Complete the worksheets first with the Lesson 1 $100/$70/$2 illustration. Then make up a second example that fails the 30% distance rule. The exercise teaches rejection as well as selection.