Lesson 10: Real World Trade Walkthrough — How to Master Your First Options Trade with Ease

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📘 Lesson 10: Real-World Trade Walkthrough — How to Place and Manage Your First Options Trade

🧠 Core Concept

This lesson walks you through an actual step-by-step trade using all the skills you’ve learned—selecting the right stock, picking the right strike and expiration, placing the order, and managing it smartly.

✅ Step 1: Choose a Stock with Clear Direction

Let’s say we’re bullish on Apple Inc. (AAPL)

  • Current Price: $100
  • Bullish Catalyst: iPhone event next week
  • Technicals: MACD turning upward, RSI at 40 (rebounding from oversold)

→ You believe AAPL may hit $110+ in the next 3–4 weeks.

✅ Step 2: Pick Strike & Expiration

Use what you learned in Lesson 9.

📌 Trade Setup:

  • Option Type: Buy Call
  • Strike Price: $105 (slightly OTM)
  • Delta: ~0.65
  • Expiration: 30 days out
  • Premium: $2.00

🔁 Breakeven:

  • $105 (strike) + $2 (premium) = $107

✅ Step 3: Place the Order

Log into your broker platform (e.g., TDAmeritrade, Robinhood, Webull, etc.)

  1. Search: AAPL
  2. Go to “Options Chain”
  3. Select expiration: Next month’s 30-day Friday
  4. Find $105 strike CALL
  5. Review the Bid/Ask spread (should be tight, e.g., $1.95 / $2.05)
  6. Click Buy to Open
  7. Use a LIMIT ORDER for $2.00
  8. Confirm your contract: 1 contract = 100 shares = $200

✅ Step 4: Manage the Trade

📉 If AAPL drops or goes sideways:

  • Set a mental or actual stop-loss at 50% of your premium = $100 max loss
  • Be aware of time decay (Theta accelerates with 7–10 days left)

📈 If AAPL rises:

  • Watch when the stock hits $107+ (break-even)
  • Consider taking profits at $110 = Intrinsic value = $5 ($500 value)
  • You can sell to close your call to lock in profit

Check out more of Apple(AAPL)

✅ Step 5: Review the Outcome

Win or lose, analyze:

  • Did the move happen within the time frame?
  • Was the strike appropriate?
  • Did Theta or Vega help/hurt you?

Use this to refine your future trades

💡 Sample Outcome

AAPL Rises to $112 in 2 Weeks
Value of Call ≈ $7.00
Profit = ($7 – $2) × 100 = $500

🧠 Bonus: Use a Trade Checklist

Before placing any option trade, ask:

  1. What’s my thesis?
  2. What is the event or catalyst?
  3. What strike has the right delta and reward?
  4. What’s my max risk?
  5. What’s my exit plan?

✅ Quick Quiz

  1. What’s the break-even on a $105 strike call bought for $2?
  2. Why do you use a limit order instead of market?
  3. When should you exit a losing trade?

🧠 Answers

  1. $107
  2. To avoid slippage from wide spreads
  3. Around 50% premium loss, or if thesis fails

See more of our real world trading walk throughs in our Stock Options Analysis & Trading Strategies.

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