 Hey everyone welcome to the lesson in this video. I want to show you how to trade a long put vertical in tasty works, so we're looking at SPY the S&P 500 ETF and So let's say that your assumption was that you wanted to take a bearish position in SPY You thought in the short term that SPY was going to go down One of the positions you could use to do that would be a long put vertical And so to set that up on tasty works very easy simply go to the trade tab Oh, excuse me up here hit the trade tab and If you're in the table view this will show you all the different option chains now We like to stay in the monthly with Between 30 and 60 days the bold white indicates that these are the monthly options So we choose the one between 30 and 60 days in this case 38 if we open up that option chain It brings up the different strikes and what we can do is go over to the put side And we can simply click on the bid and the ask to set this up and I'll show you one other way as well So when we are buying a put vertical for example We'd like to start with the strikes that are slightly in the money So you can see the ITM right here all these strikes are in the money. So let's just choose one Let's say the 279 and that's the one that we're going to buy. So we just click on the ask Okay, and that populates, you know, it's you know, it's a buy because it's circled outline with green color And then we want to sell one that's lower. So let's go five points wide Which would be the 274 strike and then we'll simply click on the bid which populates the sell order Okay, so it's it's all set up You can see that this is about a 50-50 bet you can see by your probability of profit about a 50 percent 51 percent probability of making profit you can see the probability of making 50 percent of max profit is about 67 percent You can see the delta is negative because this is a bearish trade. We want the stock to go down You can see your theta your max profit at 285 and your max loss at 214 So that's one way to set it up if we clear that off We can also utilize our strategy drop down up here. Now. Remember, this is a long put vertical So we first need to toggle this to long keep that on put and make sure that our drop down goes to vertical Okay, and that actually automatically populates the strikes on to our screen, but those aren't the ones we wanted, right? We wanted the 279 so you can simply click and drag and the 274 so we drag that one up there Either way, it's it's extremely easy Whatever your preference is it doesn't matter So if you're happy with that you can still see the statistics And if that's all you need to know to send the trade in Simply hit review and send and then you can get filled with the broker now. I'm a visual person I'm a visual trader. So I like to go over to the curve tab and Make sure the analysis is highlighted and that will populate your visual graph of the trade So you can see you know exactly what price you'll be profitable and what price you'll be Unprofitable and that'll give you everything you need to kind of see the visual representation Now you still have your statistics down here Those haven't changed and you can view these from both the table mode as well as this analysis mode Now let's say this this looked okay But you wanted to mess around and see what it would look like if you move these strikes around so you could click and drag your Your long put this way you can click and drag your short put this way Give an idea of what your max profit and and max profit and max loss would be you can you can look at that by either You know looking at your flag up here and you can see that changes as you move it around You know, this is where your max at max profit. This is where you're at max loss That's also displayed down below for the max profit and loss But this helps you get a gauge of if you're kind of in between the max profit and loss To see exactly where your break-even points are and everything that you need to know The other thing if you want to use some other Simulation techniques is you can look at the you can look at the date today at the time of this recording. It's 313 2018 but if you move that through time, you can kind of see what happens to the P&L line if you wanted to vary the The volatility the implied volatility just make sure you're going down to the options in which you're trading Which is the one with 38 days to expiration in this case And you can move the volatility up and down and you can see what that does to your P&L over time So there's a lot of great tools a lot of ways to Understand exactly what your trade looks like before you even enter it And so I hope this was helpful in showing you how to trade a long put vertical in tasty works See you at the next lesson