Planning Exit Orders on Debit Spreads to Take Profits or Losses | Long Verticals & Diagonals

Long Verticals & Diagonals | Cameron May | 12-18-25
Characteristics and Risks of Standardized Options. https://bit.ly/2v9tH6D

In this video, Schwab Education Senior Manager Cameron May will focus on planning and managing exit orders for debit spread trades, with an emphasis on how traders might think about both profit targets and risk control before the trade is ever placed. Using a real-time example on the thinkorswim® Desktop paperMoney® platform, we’ll walk through how a trader might structure the “back end” of a debit spread, including how and where exit decisions might be made as market conditions change.

We’ll cover how to plan and place limit orders and stop orders in an effort to manage potential outcomes, and discuss the market scenarios under which each type of exit might come into play. Along the way, we’ll look at how price movement can affect debit spread behavior, and why having a predefined plan for both profits and losses can help remove emotion from trade management. As always, the video is designed to be educational, not predictive, and to help traders better understand the mechanics of managing debit spreads using the tools available on the thinkorswim Desktop paperMoney platform.

Some stocks are expensive and even their options are costly! Join your education coach to discover an option strategy that allows you to consider options with those expensive underlying stocks with relative low amounts of capital. Learn the risks and how to trade and manage long vertical and diagonal spreads.
1023-34RR

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

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