 Hey everyone welcome back in this video I want to show you how to trade a short call vertical in tasty works so we're looking at a chart of SPY the S&P 500 ETF and Looking at the chart You know not necessarily saying that this is a trade that I would make but just as an example Let's say you were looking at this chart and you decided that you were you had a short directional bias in SPY meaning you thought over the short term that you may see a little bit of a drawdown from where it is currently priced What you could do is you could sell a call vertical spread and to do that you simply go to the trade tab and Within the option chains you can see you'll have the different expiration cycles We like to stick with the monthlies. They're the most liquid and we like to stay between 30 and 60 days to expiration So we'd look at the one with 38 days in this case And you can click the little arrow to pop up the option chain Then what you're gonna do? There's a couple different ways to sell a call vertical or to implement a short call vertical One is to simply click on the bid and the ask of the desired strikes that you want to choose So let's say we wanted to you know, this is the call side. So say we wanted to Sell a slightly out of the money call vertical spread So here's the in the money in the money. So this would be out of the money on the call side So let's say we choose this one and you could simply click on the bid to sell that strike And then let's say we wanted to go five points wide So we go from 278 count five away, which is the 283 simply click on the ask to buy that one So we're selling the 278 and then we're buying the 283 to define our risk at that point Okay, so that's it's all set up. And so now you can check your stats. You see a probability of profit of 58% You see the probability of making 50% is this is you have a 76% chance You can see the Delta. Obviously, it's negative We are anticipating the stock to go down if we're right on the trade you can see your theta Max profit and max loss So so that's one way to set it up. The other way would be to let's clear this one off Is to go up to our strategy drop drop down Now one thing to notice is the first thing is short, you know You can click on that to toggle between short and long We obviously are wanting to do a short call vertical and the same thing here This is set at put so we click that to change it to call and then this is at vertical You've got the strategy drop down so you can do vertical and hit go and that automatically puts it on your chart Now you can see it all it all it automatically goes, you know very close to the money And so that's actually the same one that we chose for the short strike But our long call defaults to the very next strike So we want to click and drag that if we want to do the same five points away and just drag it and boom There you go. So you got the same stats 58% probability of profit You've got the 73% probability of making 50% the delta theta Max profit and max loss. Okay, so those are the two ways to set it up on the trade platform I'm a visual trader. So I like to take it over to the analysis tab just click on curve and And then make sure the analysis piece is highlighted as well and that brings up your visual graph So you can see on the green side where you're making profit That's a max profit of two hundred and six dollars and you can see the same thing in the flag up here PNL at expiration 206 and if you slide over here, you can see the pill PNL at expiration on The red piece to be 295, which is also your max loss and your buying power requirement So now that you see that now you could say, okay, maybe I don't like it Just five points wide. Maybe I want to widen it out and you can click and drag these and Adjust as needed. Now you can see the max PNL has changed to around 800 max loss to about 1300 and you can slide these back and forth To get an idea of exactly how you want the trade to look based on how it fits into your portfolio and based on your overall assumption of the direction of the underlying symbol that you're trading When you're ready to go just simply hit review and send Send it into the broker and wait to get filled Hope that was helpful. We will see you in the next lesson