tda longverticalspreads slides

8/2/2019 TDA LongVerticalSpreads Slides

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Long Verical SpreadsCourse Manual


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Table o Contents

Geing Sared

Righs vs. Obligaions

Long Call Verical Spreads

Long Pu Verical Spreads 3

Your Educaion Plan 5

2011 TD Amerirade IP Company, Inc. 2


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Disclaimers

Opions are no suiable or all invesors as he special risks inheren o opions rading

may expose invesors o poenially rapid and subsanial losses. Opions radingsubjec o TD Amerirade review and approval. Please read Characerisics and Risks oSandardized Opions, beore invesing in opions.

Indusry regulaions require cerain condiions be me beore TD Amerirade can exendopions rading privileges. For addiional requiremens or opions posiions, and or our

opions exercise policy, consul he TD Amerirade Margin Handbook.

Supporing documenaion or any claims, comparison, saisics, or oher echnical daain opions communicaion, will be supplied upon reques.



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Disclaimers

A covered call sraegy can limi he upside poenial o he underlying sock posiion, as

he sock would likely be called away in he even o a subsanial sock price increase.Addiionally, any downside proecion provided o he relaed sock posiion is limiedo he premium received. (Shor opions can be assigned a any ime up o expiraionregardless o he in-he-money amoun.) The maximum risk o a covered call posiion ishe cos o he sock, less he premium received or he call, plus all ransacion coss.

Pas perormance is no guaranee o uure resuls.

A long call or pu opion posiion places he enire cos o he opion posiion a risk.Should an individual long call or long pu posiion expire worhless, he enire cos o heposiion would be los.


5/532011 TD Amerirade IP Company, Inc. 5

Disclaimers

A naked call sraegy includes he risk o he obligaion o sell he sock a he srike

price, regardless o how much appreciaion occurs in he sock price. Should a naked callbe assigned o an invesor, he invesor would need o acquire he sock in he marke inorder o deliver he sock o he invesor exercising heir righ o call he sock. Sincehere is no upper limi on how high a sock migh appreciae, he risk o a naked callposiion is unlimied. Naked opion sraegies involve he highes amoun o risk and areonly appropriae or raders wih he highes risk olerance.

The naked pu sraegy includes a high risk o purchasing he corresponding sock ahe srike price when he marke price o he sock will likely be lower. Naked opionsraegies involve he highes amoun o risk and are only appropriae or raders wih hhighes risk olerance.

Maximum poenial reward or a credi spread is limied o he ne premium received, lesransacion coss. The maximum loss is he dierence beween srikes, less ne premiumreceived, plus ransacion coss.



Disclaimers

Maximum poenial reward or a debi spread is limied o he dierence beween srike

less ne premium paid, less ransacion coss. The maximum loss is he ne premium paidand ransacion coss.

paperMoney Trading: This soware appl icaion is or ed ucaional pur poses only.Successul virual rading during one ime period does no guaranee successul invesino acual unds during a laer ime period as marke condiions change coninuously.

Probabiliy analysis resuls are heoreical in naure, no guaraneed, and do no relecany degree o cerainy o an even occurring.

Margin rading increases risk o loss and includes he possibiliy o a orced sale i accounequiy drops below required levels. Margin is no available in all accoun ypes. Careully

review he Margin Handbook and Margin Disclosure Documen or more deails. Please seeour websie or conac TD Amerirade a 800-669-3900 or copies o hese documens.



Disclaimers

Spreads are muliple-leg opion sraegies, and can enail subsanial ransacion coss,

which may impac any poenial reurn. These are advanced opion sraegies and oeninvolve greaer risk, and more complex risk, han basic opions rades.

Transacion coss (commissions and oher ees such as conrac ees, exercise andassignmen ees, ec.) are imporan acors and should be considered when evaluaingany rade. Transacions cos or rades placed online are $9.99 or sock orders, $9.99 o

opion orders plus a $0.75 ee per conrac. Exercise or assignmen o an opion posiionincurs a $19.99 exercise ee.

Examples presened in his session are or educaional and illusraive purposes only. Realand/or hypoheical securiies depiced are speciically no soliciaions or recommendaiono rade a speciic securiy or o engage in a paricular rading or invesing.



Disclaimers

TD Amerirade and Invesools Inc., and are separae bu ailiaed companies ha are no

responsible or each ohers services or policies.

TD Amerirade, Division o TD Amerirade, Inc., member FINRA/SIPC/NFA. TD Ameriradeis a rademark joinly owned by TD Amerirade IP Company, Inc. and The Torono-DominioBank. 2011 TD Amerirade IP Company, Inc. All righs reserved. Used wih permission.


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Geting Sared


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Geing Sar

Welcome

The Long Vertical Spreads course is designed o each you he basic componens o buying

call and pu verical spreads. In his course, you will learn wha a long verical spread is, howo creae one, and he poenial risks and rewards associaed wih his sraegy.

Beore saring he Long Vertical Spr eads course, consider learning abou basic opionssraegies. Prior o moving on o complex opions sraegies, many invesors may chooseo complee he ree courses lised below. These courses will presen he oundaion

necessary o comprehend and complee his course.

Inroducion o Opions

Buying Calls

Buying Pus

Covered Calls

102011 TD Amerirade IP Company, Inc.


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Geing Sar


Welcome

The goal o hi s course is o inroduce you o he long verical spreads sraegy. However

here are subleies and nuances o opions ha are imporan o grasp o help youbecome a more inormed opions invesor. I is also imporan o undersand which opiosraegies are inended or dieren marke condiions. These are aspecs o keep in minas you consider urhering your educaion.

Aer compleing his course, we invie you o consider oher online courses rom

TD Amerirade, as well as he webcass and workshops ha are available o allTD Amerirade cliens or ree. Access o a comprehensive ee-based educaion oeringis available hrough our educaion ailiae, Invesools rom TD Amerirade Holding Corp


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Geing Sar


Learning Outcomes

Aer compleing he Long Vertical Spre ads course, you should be able o

Diereniae beween righs and obligaions or opion buyers and sellers

Ideniy he wo ypes o long verical spreads: long call vericals and long pu vericals

Describe how o consruc long verical spreads

Recognize he risks and rewards o long verical spreads

To complee his course, read all maerial or each lesson, complee all aciviies andassessmens, and consider creaing an educaion plan.


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Righs vs. Obligaions


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Introduction

Many opion invesors speculae on he direcion

o an index or sock by buying call or pu opions.Because purchased opions experience he negaiveeecs o ime decay, he index or sock mus movein he inended direcion or he opion o gain, oreven keep, value.

Long verical spreads don require an invesoro speculae in he same way as sraegies usingindividual long opions because hey involve buyingand selling opions simulaneously. The long andshor posiionshe legscombine o creaewha is, overall, a long opions sraegy. Alhoughlong verical spreads are direcional rades, hecos o buying a call or pu opion is ose by sellinganoher call or pu opion a a dieren srike price.

Long Vertical SpreadsLearning Oucomes

Diereniae beween righsand obligaions or opionbuyers and sellers

Ideniy he wo ypes o longverical spreads: long callvericals and long pu vericals

Describe how o consruc longverical spreads

Recognize he risks and rewardso long verical spreads


Righs vs. Obligaio


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Righs vs. Obligaio


Introduction

This course will help you build a basic knowledge o long verical spreads so you can decide

i his opions sraegy has a place in your own overall invesing sraegy. Beore acklinglong verical spreads, however, i is necessary o review a ew basic opion conceps,speciically righs and obligaions as hey perain o opion buyers and sellers.


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Righs vs. Obligaio

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Long and Short Positions

When invesors creae a new posiion by buying or selling a call or pu opion, hey are

eiher aking on righs or obligaions.

Long Position: Buying an opion (call or pu) o open is known as a long posiionbecause he invesor will reain conrol o he opion as he owner.

Short Position: Selling an opion (call or pu) o open is known as a shor posiion becaushe invesor will orgo he conrol o he opion and insead be subjec o obligaions.


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Righs vs. Obligaio


Long and Short Positions

Les look a an example:

Long Position: An invesor who purchases a March $30 call opion (long posiion) hash e right o buy he underlying sock a $30 per share unil he March expiraion dae

Short Position: An invesor who sells a March $30 call opion (shor posiion) ocreae or open an opions poison has he obligation o sell he sock a $30 unil h

March expiraion dae.

R h Obl


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Righs vs. Obligaio


The Dierence between Rights and Obligations

Is also imporan o undersand he dierence beween righs and obligaions when

discussing buying and selling opions. This char will help you undersand hese dierence

Option Type Position Long/Short Right ObligationCall Opion Buyer Long Has he right o buy h e

sock a a se priceCall Opion Seller Shor Has he obligation o sell

he sock a a se price

Pu Opion Buyer Long Has he right o sell h e

sock a a se pricePu Opion Seller Shor Has he obligation o buy

he sock a a se price

Ri h Obli i


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Righs vs. Obligaio


Options Risk

Invesors should pay paricular aenion o he risks associaed wih opion sraegies.

Risk #1: Buying Option Contracts

When invesors buy opion conracs, he risk is limied o he premium paid or heopion and ransacion coss. A long call or pu opion posiion places he enire coso he opion posiion a risk. Should an individual long call or long pu posiion expireworhless, he enire cos o he posiion would be los.

Ri h Obli i


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Righs vs. Obligaio


Options Risk

Risk #2: Selling Option Contracts

When invesors sell opion conracs ha were no previously purchased i is called ashor posiion. A shor call posiion creaes an obligaion o sell he sock a he srikeprice, while a shor pu posiion creaes an obligaion o buy he sock a he srike priceShor opion posiions can be sand-alone sraegies; in oher words hey are no iedo any oher posiion or cash. These are called uncovered or naked posiions. Nakedopion sraegies involve he highes amoun o risk and are only appropriae or raders

wih he highes risk olerance. Shor opion posiions can also be combined wih sockposiions or long opion posiions and are called spreads. Covered calls and long vericaspreads are examples o opion spread sraegies. One o he imporan dierencesbeween naked opion posiions and opion spread posiions is ha naked call posiionshave unlimied risk and naked pu posiions have very signiican risk, while spreadsypically have limied risk.

To urher explain he risk o sel ling opion con racs, les review wo examples. The irsis a covered call, and he second is a shor naked call.

Righs vs Obligaio


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Righs vs. Obligaio


Covered Call

The image below illusraes an invesor creaing a covered call posiion, meaning he

invesor buys he sock and sells a call opion. The shor call opion creaes an obligaiono sell he sock a $42, bu because he invesor owns he shares he can deliver hem i heopion buyer chooses o exercise he call. In his example selling he call does no creae anunlimied risk scenario. The invesors risk is ha he underlying sock alls in value.

Righs vs Obligaio


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Righs vs. Obligaio


Covered Call Risk

The image below shows boh he sock and call rades occurring a he same ime, a rade

commonly known as a buy-write . Keep in mind ha covered calls a re also crea ed by in-vesors selling calls on sock hey already hold. The maximum risk o a covered call posi-ion is he cos o he sock, less he premium received or he call, plus all ransacioncoss. (Buy-wrie orders are subjec o sandard commission raes or each leg o heransacion plus per conrac ees on he opion leg.)

Righs vs Obligaio


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Righs vs. Obligaio


Short Naked Call

The image below illusraes a shor call ha is no covered by a sock posiion or a naked

call . The invesor has sold a $42 call opion and received he opion premium bu does noown sock shares or which he or she sold he call opion.

Transaction costs are an important aspect of evaluating any trade, and should be considered before proceeding with any trade o r trading strategy. The depiction above does ninclude transaction costs and is for illustrative purposes only. Transaction costs for trades placed online are $9.99 for stock orders and $9.99 for option orders plus a $0.75 feecontract. Exercise or assignment of an options position incurs a $19.99 fee.

Righs vs Obligaio


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Righs vs. Obligaio


Short Naked Call

In his case, here are wo possible scenarios: he sock alls below $42 or he sock rises

above $42.

Scenario 1: Stock Falls below $42

I he sock says below $42, he invesor keeps he opion premium and he opion isno exercised (meaning he invesor doesn have o sell he sock). The invesor doesno incur a loss in his scenario; insead, he invesor gains he opion premium, minus

ransacion coss.

Righs vs Obligaio


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Righs vs. Obligaio


Short Naked Call

Scenario 2: Stock Rises above $42

I he sock rises above $42, here is an obligaion o sell he sock a $42 per share o hopions buyer. However, because he invesor does no own he sock, he invesor wouldhave o purchase 100 shares o sock (or each conrac) a curren marke value and sellhe sock a $42 o he opions buyer. Since here is no limi o how high he sock couldrise, his posiion has unlimited risk.

The risk is rom he price o he sock, where he invesor mus go ou ino he marke andacquire i, in order o sell i a $42. Wha i he sock rose o $50, $60, or even $100? I hesock rose o $100 per share, he sock would be bough or $10,000 ($100 x 100 shares)and sold o he opions buyer or $4,200 ($42 x 100 shares), ulimaely cosing he invesor$5,800 (plus commissions and conrac ees o open he naked call posiion, he assignmenee, and, i he accoun did no hold he cash needed o buy he sock, margin ineres.)

Righs vs. Obligaio


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Righs vs. Obligaio


Short Naked Call

While scenario number wo is a wors-case scenario, i helps o poin ou ha here is

unlimited risk. Wih his knowledge, les look a long verical spreads, which combinebuying and selling an opion wih deined risk o reduce he cos o a direcional rade.Unlike he covered call or cash secured pu sraegies, hese spreads do no involveholding he underlying sock in order o deliver on he assignmen o a call, or dedicaingcash o purchase sock upon he assignmen o a pu.

Now ha we have he oundaional knowledge o righs and obligaions, les begin oursudy o long verical spreads.


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Long Call Verical Spreads

Long Call Verical Sprea


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g p


Long Call Vertical Spreads

There are wo ypes o opions: calls and pus. There are also wo ypes o long

verical spreads:

Long call vertical spreads

Long put vertical spreads

Because each spread ype has is own objecive, we will discuss each separaely. Les

sar wih long call verical spreads.



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g p


The Basics

A long call vertical spread is consruced by simulaneously buying a call opion and

selling a call opion a a higher srike price.

In he long call verical spread image above, you will see ha an invesor is

Buying a Call: The $42.00 srike call is bough a $1.30 per share, meaning he invespays $130.00 ($1.30 x 100 shares o sock).

Selling a Call: The $43.00 srike call is sold a 80 per share, meaning he invesorreceives $80.00 ($0.80 x 100 shares o sock).




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Expiration Results

Knowing wha could be los by placing he rade, see wha happens as he rade close

a expiraion.

Stock Falls below $42: I he sock is below $42 a expiraion, boh call opions woulbe ou o he money (OTM) and have zero value. In his scenario, he invesor wouldno be able o recoup any o he iniial debi paid ($50 plus commissions and ees).This is he maximum loss scenario.

Stock Rises above $43: I he sock is above $43 a expiraion, boh call opionswould be in he money (ITM). This would resul in he maximum gain, which will beexplained s horly.



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Expiration Results

Stock Ends between $42 and $43: I he sock alls beween $42 and $43 a

expiraion, he $42 srike call is ITM bu he $43 srike call is OTM. This means hahe $42 srike call has inrinsic value, while he $43 srike call does no. This wouldresul in again or loss, depending on he socks price when he posiion is closed, anhe ransacion coss involved o open and close he posiion, o course. Also, i heinvesor allows he $42 srike o expire ITM, i would be auomaically exercised, andhe sock would have o be purchased a $42.

Les explore his sraegy urher by reviewing he maximum poenial gain and loss.



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322011 TD Amerirade IP Company, Inc. Transacion coss are an imporan aspec o evaluaing any rade, and should be considered beore proceeding wih any rade or radingsraegy. Exercise or assignmen o an opions posiion incurs a $19.99 ee.

Maximum Potential Loss

In he opion chain below you will see ha he price column liss a 50 net debit. The ne deb

is igured by aking he long call debi and subracing he shor call credi ($1.30 $0.80).

1. Net Debit:Muliply he ne debi by 100 shares o sock (50 x 100 shares) $50.0

2. Commissions/Fees :Add he $9.99 commission and $1.50 in opionconrac ees ($0.75 per conrac) + $11.49

Maximum Potential Loss $61.4



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Maximum Potential Gain

No maer how high he sock rises, he maximum poenial gain is limied. The reason is ha

a long verical spread places bookends in a rade and give you a spread value beween wosrike prices. In his example, he spreads maximum value can only be $1.00 ($43.00 - $42.00)

Ulimaely, he invesors gain is hen limied by he dierence beween he srike pricesminus he iniial debi (he ne debi includes ransacion coss). For his example, hemaximum poenial loss is as ollows:

1. Maximum Spread ValueThe dierence beween he srike prices ($1.00 x 100) $100.0

2. Maximum Potential LossThe ne debi plus commission and ees ($50.00 + $11.49) $61.49

Maximum Potential Gain $38.51

Now les look a a valuable ool in evaluaing riskhe risk proile graph.



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342011 TD Amerirade IP Company, Inc. Maximum poenial reward or a debi spread is limied o he dierence beween srikes, less ne premium paid.The maximum loss is he ne premium paid and ransacion coss.

Risk Profle Graph

A risk profile graph is a profit and loss graph or opion sraegies. These graphs are use

o show he range in which an invesor will be proiable or incur a loss on a rade. This ois ound in he hinkorswim rom TD Amerirade rading plaorm (live and paperMoney)and displays wo key acors:

Stock Price: The underlying sock price is displayed horizonally (x-axis).

Maximum Gain/Loss: The opion posiions proi/loss is releced verically (y-axis

For illusraive purposes only.



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Risk Profle Graph

You can see on he risk proile graph below ha he poenial gains in a long call verical

spread are limied, as are he poenial losses. Once he sock price reaches a cerain poin(or his example below $42, he long srike price), i urns la, indicaing maximum loss.Conversely, once he sock moves above he shor srike price ($43 or his example), herisk proile line urns la again, indicaing maximum gain. O course, hese would need o bmodiied by ransacion coss o arrive a he acual ne igure or max gain or max loss.

Les look a anoher aspec o long verical spreadsopion probabiliy.





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Option Probability

Every opion srike price has a

cerain probabiliy o being inhe money (ITM) or ou o hemoney (OTM) a expiraion.This probabiliy changes as heunderlying sock lucuaesand can be viewed on hehinkorswim rom TD AmeriradepaperMoney plaorm and heacual rading plaorm.

This graphic shows he probability of expiring (Prob. Exp) or various call opion srikesThe probabiliy o expiring is he probabiliy ha he opion will be ITM a expiraion.Noice ha he OTM calls, highlighed in he blue box, have a less han 50 percen

probabiliy o expiring ITM. This means hey have a greaer han 50 percen probabiliy oexpiring OTM.




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Option Probability

Remember, he goal o a long call verical spread is or he sock o close above he shor

srike a expiraion. This means boh opions will be ITM.

Keep in mind probabiliy analysis resuls are heoreical in naure, no guaraneed, and dono relec any degree o cerainy o an even occurring.



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Long Call Vertical Spreads Objective

Ulimaely, he long call verical spreads objecive is or he sock o be above he shor

srike price a expiraion. This objecive gives he spread a bullish directional bias.

Objective: Tha he sock says ABOVE he shor srike price a expiraion.

This complees our review o long call verical spreads, nex we will sudy long puverical spreads.


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Long Pu Verical Spreads

Long Pu Verical Sprea


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The Basics

A long put vertical spread is consruced by simulaneously purchasing a pu opion and

selling a pu opion a a lower srike price.

In he long pu verical spread image above, you will see ha an invesor is

Buying a Put: The $43.00 srike pu is purchased a $1.30 per share, meaning heinvesor pays$130.00($1.30 x 100 shares o sock) plus ransacion coss.

Selling a Put: The $42.00 srike pu is sold a 85 per share, meaning he invesorreceives $85.00 ($0.85 x 100 shares o sock) minus ransacion coss.




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Expiration Results

Now les see wha happens as he rade closes a expiraion.

Stock Falls below $42: I he sock isbelow $42 a expiraion, boh pu opions woulbe ITM. This would resul in he maximum gain, which will be explained shorly.

Stock Rises above $43: I he sock isabove $43 a expiraion, boh pu opionswould be OTM and have zero value. In his scenario he invesor would lose he eniredebi paid ($45 plus commissions and ees). This is he maximum loss scenario.

Stock Ends between $42 and $43: I he sock alls beween $42 and $43 aexpiraion, he $43 srike pu is ITM bu he $42 srike pu is OTM. This means hahe $43 srike has inrinsic value, while he $42 srike does no. This scenario couldresul in again or a loss, depending on he socks price when he posiion closes andransacion coss.

Les explore his sraegy urher by reviewing he maximum poenial loss and gain.



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Maximum Potential Loss

In he opion chain below you will see ha he price column liss a 45 net debit. The ne deb

is igured by aking he long call debi and subracing he shor call credi ($1.15 $0.85 =$0.45). Knowing his we can igure he maximum poenial loss.

1. Net Debit:Muliply he ne debi by 100 shares o sock (45 x 100 shares) $45.0

2. Commissions/Fees :Add he $9.99 commission and $1.50 in opionconra c ees ($0.75 per conrac) +$11.49

Maximum Potential Loss $56.4

2011 TD Amerirade IP Company, Inc. Transacion coss are an imporan aspec o evaluaing any rade, and should be considered beore proceeding wih any rade or radingsraegy. Exercise or assignmen o an opions posiion incurs a $19.99 ee.



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Maximum Potential Gain

No maer how high he sock rises, he maximum poenial gain is limied. The reason is ha

a long verical spread places bookends in a rade and give you a spread value beween wosrike prices. In his example, he spreads maximum value can only be $1.00 ($43.00 - $42.00)

Ulimaely, he invesors gain is hen limied by he dierence beween he srike pricesminus he iniial debi. For his example, he maximum poenial gain is as ollows:

1. Maximum Spread Value

The dierence beween he srike prices ($1.00 x 100) $100.00

2. Maximum Potential LossThe ne debi plus commission and ees ($50.00 + $11.49) $56.49

Maximum Potential Gain: $43.51

Now ha we have reviewed he gains and losses (or risks and rewards), les look a avaluable ool used in evaluaing riskhe risk proile graph.



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Risk Profle Graph

A risk profile graph is a profit and loss graph or opion sraegies. These graphs are

used o show he range in which he invesor will be proiable or incur a loss on a rade.This ool is ound in he hinkorswim rom TD Amerirade paperMoney soware anddisplays wo key acors:

Stock Price: The underlying sock price is displayed horizonally (x-axis).

Maximum Gain/Loss: The opion posiions proi/loss is releced verically (y-axis





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Risk Profle Graph

You can see on he risk proile graph below ha he poenial gains in a long pu veri-

cal spread are limied, as are he poenial losses. Once he sock price reaches a cerainpoin (in his example, below $42, he shor srike price), i urns la, indicaing maximumgain. Conversely, once he sock moves above he long srike price ($43 in his example),he risk proile line urns la again, indicaing maximum loss.

Similar o long call verical spreads, anoher aspec o he rade is opion probabiliy.





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Option Probability

Every opion srike price has a

cerain probabiliy o being inhe money (ITM) or ou o hemoney (OTM) a expiraion.This probabiliy changesas he underlying socklucuaes and can be viewedon he hinkorswim romTD Amerirade paperMoneyplaorm and he acualrading plaorm.

This graphic shows he probability of expiring (Prob. Exp) or various pu opion srikes.The probabiliy o expiring is he probabiliy ha he opion will be ITM a expiraion. Noic

ha he OTM pus, highlighed in he blue box, have a less han 50 percen probabiliy oexpiring ITM. This means hey have a greaer han 50 percen probabiliy o expiring OTM.




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Option Probability

Remember, he goal o a long pu verical spread is or he sock o close below he shor

srike a expiraion. This means boh opions will be ITM.

Keep in mind probabiliy analysis resuls are heoreical in naure, no guaraneed, and dono relec any degree o cerainy o an even occurring.



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Long Put Vertical Spreads Objective

Ulimaely, he long pu verical spreads objecive is or he sock o end up below he

shor srike price a expiraion. This objecive gives he spread a bearish directional bia

Objective: Tha he sock says BELOW he shor srike price a expiraion.

Long Pus Verical Sprea


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Review

This course inroduced he basic componens o long verical spreads. You should now

undersand how o do he ollowing:

Ideniy he wo ypes o long verical spreads: long call verical spread and a long puverical spread

Calculae a long verical spreads maximum gain and loss

Inerpre he long verical spreads risk proile graph

The inormaion presened in his course has ormed a oundaion or opions spreadrading. Nex, you will learn one way o deepen your knowledge o opions.


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Your Educaion Plan

Your Educai on Pl


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Creating an Education Plan

Educaion isn an even bu an ongoing process. Youve learned he basics o opion

invesing using long call and pu verical spreads, bu here is so much more o learn oapply hese insrumens i you decide hey have a place in your overall sraegy. One o hbes ways o gain his imporan knowledge is by deermining a process o ollow called aeducation plan.

Your educaion plan oulines which courses you choose o help you achieve your invesinggoals. You may wan o learn only a ew basic opion sraegies or perhaps you wan o

be an opions aicionado. I you choose o explore opions urher, TD Amerirade anda separae bu ailiaed educaion providerInvesools rom TD Amerirade HoldingCorp.oer a wide array o courses, webcass, live evens and educaion resources ohelp you pursue your invesmen goals.

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Elements o an Options Education Plan

As a TD Amerirade clien, you have access o numerous ree courses ha are designed inroduce you o a wide array o invesing conceps. These courses can help you ideniywhich areas o he inancial markes you are mos ineresed in pursuing.

Calendar Spreads Course

I you are considering opions as an invesmen sraegy and are looking o learn more,you may wan o consider he Calendar Spreads course o learn a lile bi more abou

complex opion sraegies.

Other ResourcesThere are courses on a variey o addiional opics as well as webcass and workshopsall available o you or ree in he TD Amerirade Educaion Cener.

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532011 TD Amerirade IP Company, Inc. Invesools does no provide nancial advice and is no in he business o ransacing rades. Invesools Inc. and TD Amerirade, Inc.,

member FINRA/SIPC/NFA, are separae bu afliaed companies and are no responsible or each ohers services or policies.

Elements o an Options Education Plan

Fee-Based Education

I you are convinced ha opions are he nex imporan sep in your invesor educaioplan, you may wan o consider he comprehensive ee-based oerings availablehrough Invesools rom TD Amerirade Holding Corporaion, a separae bu ailiaededucaion provider.

Please eel ree o visi he Invesools sie o learn is various courses oerings.

Or call an Invesools Educaion Counselor a 1.800.393.5123 o creae your ee-basededucaion pla n oday.

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