Workbook & log

Your edge compounds in the journal.

Reading builds understanding. Working through problems builds skill. Log every trade, win or lose, and do the drills before a real dollar is at risk.

Trade journal

Date	Trade	Strike/DTE	Delta	Premium	Vol	Outcome
Empty log. That is honest. Fill it before the first live contract.

1. The daily erosion of an option’s value, which is the seller’s profit, is called ________.
2. Setting aside the full purchase price in cash when selling a put makes it a ________ put.
3. An option’s rough probability of finishing in-the-money is approximated by its ________.
4. Selling a call without owning the shares is a ________ call — the most dangerous trade in the book.
5. Closing a short option and opening a later one for a net credit is called ________.

One contract equals 100 shares. Show the work, then peek.

1. You sell one put and collect a premium quoted at $3.20. How many dollars did you collect?
2. You sold a cash-secured put at the $380 strike for a $4.50 premium. What is your breakeven stock price?
3. You own 100 shares bought at $400. You sell a covered call at $420 for $3.00 and the shares are called away. Total profit?
4. You set aside $38,000 to secure a put and collected $500 that expired worthless. Return on cash set aside?