Premium test

ENTRY IS 0.53
Exit is 2.62

How much did you make (decimals aren't needed)?
Hint: calculate the difference and don't forget to factor in shares

Mathematical Equivalence

ON

Entry 0.53
Stop loss is 0.39

How much money did you risk?
Decimals not needed

Mathematical Equivalence

ON

You must multiply the premium chart numbers by 100 to get the dollar value of the contract.

• TRUE

• FALSE

Answer explanation

You are borrowing 100 shares so you must multiply it by that per contract.

The premium chart will go up when you're in a buy and down when you're in a sell.

• TRUE

• FALSE

Answer explanation

You always want your premium chart going up. If it's going down, that means your contract is losing value & you're losing money.

Reorder the following for entering a trade

• Identify the contract you want to trade

• View the spread & IV to make sure it meets your requirements

• Click the ask price

• Submit trade

When entering an OCO order, you are entering a stop loss and a take profit for your trade

• TRUE

• FALSE

If you have an OCO order in place & want to exit sooner you must:

• Go to the trade and close it

• Cancel the OCO orders & close the trade

• Select the Bid options

Your premium chart allows you to drag your take profit and/or your stop loss

• TRUE

• FALSE

The premium chart displays the stocks price.

• TRUE

• FALSE

Reorder the following to view the premium chart

• Identify the contract

• Right click ASK

• Copy premium

• Paste to chart

• Click Enter & Autozoom to see the chart clearly