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How to Trade Calls and Puts
with Precision
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by
TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
© 2015 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission
Disclosures
Options trading involves unique and often significant risks.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to
potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please
review the previously provided copy of Characteristics and Risks of Standardized Options prior to trading options.
Spreads and other multiple-leg option strategies can entail substantial transaction costs, including multiple
commissions, which may impact any potential return. These are advanced option strategies and can involve greater
risk, and more complex risk, than basic options trades.
Investors should consider contacting a tax advisor regarding the tax treatment applicable to options transactions.
Probability analysis results are: based on historical data, theoretical in nature, not guaranteed and do not reflect any
degree of certainty of an event occurring. Past performance of a security or strategy is no guarantee of future
performance or investing success.
This presentation includes a feature that allows recording of electronic (including audio) participant-shared
content. By continued participation in this session you automatically consent to such recording, and the
subsequent rebroadcast of any recording.
Disclosures
Supporting documentation for any claims, comparison, statistics, or other technical data in options communication,
will be supplied upon request.
Examples presented in this session are for educational and illustrative purposes only.
TD Ameritrade contributors are separate from and not affiliated with third party media.
A covered call strategy can limit the upside potential of the underlying stock position, as the stock
would likely be called away in the event of substantial stock price increase. Additionally, any
downside protection provided to the related stock position is limited to the premium received.
The cash secured put strategy includes a high risk of purchasing the corresponding stock at the strike
price when the market price of the stock will likely be lower. If a short put were not cash secured, it
would be a naked put strategy; naked option strategies involve the highest amount of risk and are
only appropriate for traders with the highest risk tolerance.
Speakers
Kevin Hincks
Sr. Specialist, Trader, Chat Host & Monitor,
TD Ameritrade
 Active member of CBOE, CBOT, and CME since
1986
 Hosts daily Swim Lessons™ in the thinkorswim®
platform and The Plunge webcast
Shawn Cruz
Trader Content Specialist, thinkorswim®
 Develops content daily for Swim Lessons™ in the
thinkorswim® platform
 Holds Series 63,66, and 7 licenses
Important Information
Options are not suitable for all investors as the special risks inherent to options
trading may expose investors to potentially rapid and substantial losses. Prior to
trading options, you should carefully read the previously provided copy of
Characteristics and Risks of Standardized Options.
Trading futures and forex involves speculation, and the risk of loss can be substantial.
Market volatility, volume and system availability may delay account access and trade
executions.
Spreads, Straddles, and other multiple-leg option strategies can entail substantial
transaction costs, including multiple commissions, which may impact any potential
return. Advanced option strategies often involve greater and more complex risk than
single-leg options trades. Investors should also consider contacting a tax adviser
regarding the tax treatment applicable to spreads and other multiple-leg options
transactions.
Supporting documentation for any claims, comparison, statistics, or other technical
data will be supplied upon request.
Member FINRA/SIPC/NFA
6/29/2015
5
Important Information
In order to demonstrate the functionality of the platform, we need to use actual
symbols. However, TD Ameritrade does not make recommendations or determine the
suitability of any security, strategy or course of action for you through your use of our
trading tools. Any investment decision you make in your self-directed account is
solely your responsibility.
Access to real-time market data is conditioned on acceptance of the exchange
agreements. Professional access differs and subscription fees may apply.
Past performance of any security or strategy does not guarantee future results
or success.
Backtesting is the evaluation of a particular trading strategy using historical data.
Results presented are hypothetical, they did not actually occur and they may not take
into consideration all transaction fees or taxes you would incur in an actual transaction.
6/29/2015
6
Today’s Goals
 Define options greeks and probability analysis.
 Demonstrate call and put strategies in the thinkorswim® platform.
6/29/2015
7
Greeks and Probability

Delta is a measure of an option’s sensitivity to changes in the price of the
underlying asset.

Gamma is a measure of delta’s sensitivity to changes in the price of the underlying
asset.

Vega is a measure of an option’s sensitivity to changes in the volatility of the
underlying asset.

Theta is a measure of an option’s sensitivity to time decay.
Probability analysis results shown (such as the probability of an option expiring in the
money) are theoretical in nature, are not guaranteed, and do not reflect any degree of
certainty of an event occurring.
6/29/2015
8
How to Trade Calls and Puts with Precision
Up next:
Using Weekly Options
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by
TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.
© 2015 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission
Disclosures
Options trading involves unique and often significant risks.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to
potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please
review the previously provided copy of Characteristics and Risks of Standardized Options prior to trading options.
Spreads and other multiple-leg option strategies can entail substantial transaction costs, including multiple
commissions, which may impact any potential return. These are advanced option strategies and can involve greater
risk, and more complex risk, than basic options trades.
Investors should consider contacting a tax advisor regarding the tax treatment applicable to options transactions.
Probability analysis results are: based on historical data, theoretical in nature, not guaranteed and do not reflect any
degree of certainty of an event occurring. Past performance of a security or strategy is no guarantee of future
performance or investing success.
This presentation includes a feature that allows recording of electronic (including audio) participant-shared
content. By continued participation in this session you automatically consent to such recording, and the
subsequent rebroadcast of any recording.
Disclosures
Supporting documentation for any claims, comparison, statistics, or other technical data in options communication,
will be supplied upon request.
Examples presented in this session are for educational and illustrative purposes only.
TD Ameritrade contributors are separate from and not affiliated with third party media.
A covered call strategy can limit the upside potential of the underlying stock position, as the stock
would likely be called away in the event of substantial stock price increase. Additionally, any
downside protection provided to the related stock position is limited to the premium received.
The cash secured put strategy includes a high risk of purchasing the corresponding stock at the strike
price when the market price of the stock will likely be lower. If a short put were not cash secured, it
would be a naked put strategy; naked option strategies involve the highest amount of risk and are
only appropriate for traders with the highest risk tolerance.