Introduction
Welcome to the engine room of the US 500 Challenge. In Course 1, we secured the tax-free shell. Now, we build the strategy. We focus on Out-of-the-Money (OTM) Short Puts on the S&P 500—a method designed to put the mathematical odds of success overwhelmingly in your favor.
As we say in our Thursday Meetings: This course is your flight manual for making money and your parachute for keeping it!
1. Trade Mechanics & The 3 Ways to Win
1.1: What is a Put Option?
Becoming the "House," Not the Gambler
In traditional investing, you buy an asset and hope it goes up. In the US 500 Challenge, we do the opposite. We act as an Insurance Company. To understand a Short Put, you must understand the two sides of an insurance contract.
The "Driver" (The Put Buyer)
Imagine someone owns €100,000 worth of the S&P 500. They are terrified of a market crash. To sleep at night, they buy a "Put Option."
Their Goal: Protection. They pay a Premium (a cash fee) to ensure that if the market crashes, someone else will buy their shares at a guaranteed price.
The "Insurance Company" (You - The Put Seller)
You are the one providing that protection.
Your Goal: Income. You collect that Premium upfront. It hits your IG account the second you open the trade.
The Deal: In exchange for that cash, you agree to buy the US 500 at a specific "Strike Price" (The Floor) if the market falls that far.
Why this is a "High-Probability" Business
Most people pay for car insurance every year and never have an accident. The Insurance Company keeps the money.
We pick a "Floor" (Strike Price) that is so far away from the current price that there is an 85% to 94% chance the market never touches it.
As long as the "accident" (the crash) doesn't happen, the insurance policy expires worthless, and you keep 100% of the premium as tax-free profit.
👨🏫 Mentor Insight: The Premium "Paycheck"
"Think of it this way: When you buy a stock, you are paying for hope. When you Sell a Put, the market is paying you to wait. You are the 'House' in the casino. Most of the time, the gamblers lose their 'insurance' money to you. Your only job is to manage the risk on the rare occasion that a 'crash' actually happens.
1.2: Win in 3 different ways
Most spread betters only make money if they guess the direction correctly. With the ShareNavigator Short Put, you turn the 'House' advantage in your favour. You profit in three different scenarios:
US 500 Goes UP: You keep the full tax-free premium.
US 500 Goes SIDEWAYS: Time decay (Theta) erodes the option's value; you keep the full premium.
US 500 Drops SLIGHTLY: As long as the market stays above your 'Safety Line' (Strike Price), you keep the full premium.
The Goal: You don't need to be 'right'; you just need to be 'not wrong' by more than 7%.
1.3: S&P 500 example and core mechanics.
Imagine the US 500 is trading at $6,787. We decide to sell a Put with a $6,400 Strike Price.
The Trade Details:
Strike Price: $6,400 (Your "Safety Line")
Premium (Points): 27.19 points (The price you are paid to take the risk)
Bet Size: $10 per point
1. Calculating Your "Paycheck"
In spread betting, we bet on points. Since you collected 27.19 points at $10 per point, your total profit is:
27.19 pts × $10/pt = $271.90 (Max Profit)
2. Calculating Your "Cushion" (Break-Even)
You don't actually start losing your own money until the market drops more than 27.19 points below your strike.
$6,400 (Strike) - 27.19 (Premium) = $6,372.81 (Break-Even)
3. The Results at Expiry: 4 Possible Scenarios
To understand how the "Safety Buffer" works, let's look at what happens to your account based on where the US 500 finishes at expiration. (Based on our example entry where you collected $271.90 in premium).
Scenario 1: Market Goes Up
Price Level: US 500 finishes at 6,800
Result: +$271.90 Profit
Why: The market stayed well above your "Safety Line." You keep the full premium.
Scenario 2: Market Goes Sideways
Price Level: US 500 finishes at 6,401
Result: +$271.90 Profit
Why: Even though the market didn't move, it stayed above your "Safety Line." Time worked in your favor, and you keep the full premium.
Scenario 3: The Break-Even Point
Price Level: US 500 finishes at 6,372.81
Result: $0.00 (Break-Even)
Why: The market fell, but the drop exactly equaled the cash premium you were paid upfront. You haven't lost anything.
Scenario 4: Market Goes Down (The Loss)
Price Level: US 500 finishes at 6,300
Result: -$728.10 Loss
Why: The market fell 72.81 points below your break-even point. This is where your "Safety Buffer" was breached.
👨🏫 Mentor Insight: The Power of 'Being Wrong'
"Stephen here. Look closely at Scenario 3. In a traditional spread bet, a drop from 6,400 to 6,372 would be a losing trade. But with the Short Put, you are still at break-even! This strategy gives you the 'permission' to be wrong about the market direction and still walk away with your capital intact. This is why we call it the US 500 Challenge—we aren't gambling on a move; we are building a buffer against volatility."
1.4: The Finish Line – Cash Settlement at Expiry
No Shares, No Hassle, Just Points
One of the biggest fears new traders have is: "What if I'm assigned? Do I have to actually buy the S&P 500 stocks?" In the US 500 Challenge, the answer is No. Because we use an IG Spread Betting Account, we are trading a "Synthetic" version of the option.
1. What is Cash Settlement?
Unlike traditional US exchanges where you might be forced to take delivery of physical shares, IG settles everything in Cash.
There is no exchange of stock.
There is no "Assignment" paperwork.
IG simply looks at where the US 500 is at the official expiry time and adjusts your cash balance accordingly.
2. Scenario A: The Clean Win (Out-of-the-Money)
If the US 500 expires above your Strike Price (e.g., Market is at 6,500 and your Strike is 6,400):
The bet is over.
The "Margin" that IG held as a security deposit is instantly released back into your "Available Funds."
You have already kept the premium from Day 1. There is nothing more to do.
3. Scenario B: The Settlement Loss (In-the-Money)
If you chose not to "Roll" and the US 500 expires below your Strike Price (e.g., Market is at 6,300 and your Strike is 6,400):
IG calculates the difference: 100 points.
If your bet size was €12 per point, IG will deduct €1,200 from your account.
The Benefit: You don't have to deal with shares or margin calls after the fact; the "bet" is simply closed, and the remaining cash is yours.
👨🏫 Mentor Insight: The 'Set and Forget' Trap
"Stephen here. While Cash Settlement makes life easy, we never want to reach Scenario B. In the US 500 Challenge, we use our 2% Safety Trigger to Roll the trade long before expiry. Cash settlement is great because it keeps our taxes simple and our admin zero, but our goal is always to have the trade expire at 'Zero' so we keep 100% of that initial paycheck."
2. Probability, Volatility, and Timing
2.1: Why this trade is High Probability
The high Probability of Profit (POP) of 94% is a key characteristic of this strategy. This high probability stems from two key factors inherent in the trade's structure:
The Safety Buffer: By selecting an Out-of-the-Money (OTM) strike price ($6400) that is significantly below the current market price ($6787), you build a large buffer. The index only needs to stay above $6400 for the option to expire worthless.
The Breakeven Advantage: Because you collected a premium $27.19, your effective break-even point ($6372.81) is even lower than the strike price. There is a buffer of almost 6% for the share price to fall before you lose. This buffer against adverse price movement is why your POP (94% chance of being above the break-even) is higher than the chance of the strike itself expiring OTM.
Multiple ways to win: The underlying index can rise, stay flat, or even fall slightly (less than 6% in this case), and you still profit.
Lesson 2.2: The critical role of Implied Volatility - The Seller’s Secret Weapon
What is Implied Volatility (IV)?
Before we look at the "Fear Gauge," we must understand the math of the "Premium."
Implied Volatility is a mathematical forecast of how much the market expects the US 500 to move (up or down) in the future.
When IV is High: The market is nervous. It expects big swings. Because of this "expected chaos," the price of insurance (the Put premium) sky-rockets.
When IV is Low: The market is calm. It expects very little movement. Consequently, insurance premiums become very cheap.
The Dual Role of IV for the Put Seller
In our US 500 Example, the IV was 20.476%. Here is how that number dictates your trade:
The Entry Rule (Selling High): The best time to sell a Put is when IV is historically high. High IV "inflates" the points you collect. It allows you to sell the same "Floor" (Strike Price) for a much higher paycheck.
Note: If IV is exceptionally low, it is often not an opportune time to place a trade because you are being paid too little for the risk you are taking.The Profit Rule (The Volatility Crush): Once you have sold the Put, you want IV to drop. When fear leaves the market and IV falls, the value of the Put you sold "shrinks" rapidly. This allows you to buy the option back much cheaper to lock in a profit early, even if the US 500 hasn't moved an inch.
The "Fear Gauge" Filter: When to Say Yes (or No)
To simplify Implied Volatility (IV), we use the VIX Index (The "Fear Gauge"). Think of the VIX like an insurance premium during a hurricane. If the weather is calm, insurance is cheap. If a storm is brewing, everyone wants protection, and insurance premiums skyrocket.
As a Seller of insurance, we want to sell when the storm is brewing!
🟢 Green Light: VIX Above 20
Signal: High Fear.
Why: Put premiums are "fat." You get paid significantly more points for the same amount of risk. This is the optimal time for a Short Put.
🟡 Amber Light: VIX 15 to 20
Signal: Normal Conditions.
Why: Be selective. Only take the highest probability trades (90%+ Probability of Profit). The "edge" is smaller here.
🔴 Red Light: VIX Below 15
Signal: High Complacency.
Why: Premiums are tiny. You are "picking up pennies in front of a steamroller." It is often better to wait for fear to return before placing a new trade.
The Dual Role of IV for the Put Seller
In our US 500 Example, the IV was 20.476%. Here is how that number dictates your trade:
The Entry Rule (Selling High): The best time to sell a Put is when IV is historically high. High IV "inflates" the points you collect. It allows you to sell the same "Floor" (Strike Price) for a much higher paycheck.
The Profit Rule (The Volatility Crush): Once you have sold the Put, you want IV to drop. When fear leaves the market, the value of the Put you sold "shrinks" rapidly. This allows you to buy the option back much cheaper to lock in a profit early—even if the US 500 hasn't moved an inch.
👨🏫 Mentor Insight: The Professional Edge
"Stephen here. The amateur trader looks at the US 500 price and guesses 'up or down.' The ShareNavigator professional looks at the VIX. We wait for the market to get scared because that is when the gamblers overpay for their protection. By waiting for the 'Green Light,' you ensure you are getting maximum 'bang for your buck' on every tax-free trade you place."
2.3: Theta Decay – Your Silent Partner
In traditional spread betting, "Time" is often your enemy because of overnight funding charges. In the US 500 Challenge, Time is the engine that creates your profit.
What is Theta?
Every option has an "Expiration Date." Because a Short Put is a wasting asset, it loses value every single day that the market doesn't crash. This daily loss in value is called Theta Decay.
As a Seller: You want the option's value to drop to zero.
The Benefit: Even if the S&P 500 doesn't move a single point, you make money simply because the calendar turns.
The "Sweet Spot": 30 to 45 Days
Time decay is not a straight line; it is a curve that accelerates as you get closer to the finish line.
Day 90 - 60: Decay is slow. The "Insurance Policy" still has a long time to run, so it holds its value.
Day 45 - 30 (The Sweet Spot): This is where we enter. The curve starts to steepen. You get a good premium, and the "melting" process begins to speed up.
The Final 7 Days: Decay is at its fastest, but the risk of a sudden move "pinning" your strike price is highest.
The "Melting" Effect in Your Account
Think of your Short Put premium like a block of ice sitting in the sun.
On Day 1, the block is large (you collected 30 points).
By Day 15, if the US 500 is sideways, the block has melted halfway (the option is now worth 15 points).
By Expiration, the block has turned to water (the option is worth 0 points).
Your Profit: You sold it for 30 and it's now worth 0. You keep the entire 30-point premium (€300 if trading at €10/pt) as 100% tax-free income.
👨🏫 Mentor Insight: Getting Paid to Wait
"This is the biggest 'Aha!' moment for my students. In most trades, you are stressed, waiting for the market to move in your favor. With Theta, you can literally go on holiday. As long as the US 500 stays above your 'Floor,' the clock is doing the hard work for you. You are effectively getting paid a daily 'salary' just for being patient."
3. Risk Management & Survival
High-probability trading is not about being a "winner"; it is about being a survivor. Because the Short Put is "Naked" (unprotected), your losses are theoretically uncapped. This module teaches you how to calculate that risk and, more importantly, how to neutralize it.
3.1 The Math of a Falling Market
In a Short Put, you start losing money once the US 500 drops below your Breakeven Price ($6372.81 in our example). For every point it falls below that level, you lose your "Bet Size" (e.g., $10).
The Formula:
Potential Loss = (Breakeven Price - Current Index Price) times Bet Size
If the Index falls to 6,300: (6372.81 - 6300) times $10 = $728.10 Loss
If the Index falls to 6,200: (6372.81 - 6200) times $10 = $1,728.10 Loss
3.2 The 2% Rule: Your Early Warning System
We never wait for the US 500 to hit our strike price ($6,400). By then, the "steamroller" has already reached us.
The Rule: If the US 500 price drops to within 2% of your strike price, you must take action.
Strike: 6,400
1% Buffer: 128 points
Trigger Price: 6,528
If the market touches 6,528 you stop hoping for a recovery and you Roll the Position.
3.3 The Lifeline: Rolling Out and Down
Rolling is how professionals "reset" a losing trade. You simultaneously close your current trade and open a new one further away.
Buy to Close: You buy back your Dec 6,400 Put (accepting a small loss).
Sell to Open: You sell a Jan 6,200 Put (a lower, safer strike).
Why this works: * Moving the Goalposts: You just gave the market another 200 points of room to breathe.
Buying Time: You added an extra month for the market to recover.
Net Credit: Because January options have more "time value," selling the new one usually covers the cost of closing the old one.
4. The Defensive Put-Seller’s Playbook
Most retail traders fail because they pick up pennies in front of a steamroller. This course teaches you how to see the steamroller coming. By combining a 7% Out-of-the-Money (OTM) buffer with an institutional Rollout Protocol, you will learn to manufacture consistent income. We back this "Engine" with a Triple-Lock safety system that would have successfully navigated the Dot-com crash, the 2008 Financial Crisis, and the 2020 Pandemic.
4.1: Black Swan Events
A "Black Swan" is a rare, sudden market crash. If you "set and forget" this trade, one bad month can wipe out a year of profits. To prevent this, you must understand the math of the downside before it happens.
Based on our example (Selling a 6,400 Put for $271.90 at $10/point):
Scenario A: The Win (Max Profit)
Market Level: US 500 stays Above 6,400
Math: 0 points below strike.
Financial Result: +$271.90
Scenario B: The Breakeven
Market Level: US 500 falls to 6,372.81
Math: 27.19 points below strike (exactly the premium collected).
Financial Result: $0.00
Scenario C: The Correction
Market Level: US 500 falls to 6,200
Math: 200 points below strike.
Financial Result: -$1,728.10
Scenario D: The "Black Swan" Crash (-12%)
Market Level: US 500 falls to 6,000
Math: 400 points below strike.
Financial Result: -$3,728.10
Why the Math Matters
If you win 9 times (+$2,447) but lose $4,000 on the 10th trade because you didn't manage the risk, you are $1,553 in the red.
Amateur traders "pick up pennies in front of a steamroller." At ShareNavigator, we avoid this by using the Triple Lock Defence System (covered in the next lesson) to ensure we exit or adjust the trade long before a "Correction" becomes a "Crash."
👨🏫 Mentor Insight: Respect the Risk
"Stephen here. Don't let the 85% win rate make you complacent. The Short Put is a powerful wealth-builder, but it requires the discipline of a professional. We never 'hope' the market will bounce back. We have pre-set 'Exit Triggers' that protect our capital so that one bad month never defines our year. Are you ready to see how we lock the door against the Black Swan?"
4.2 The strategy engine and rollout protocol
The 7% OTM Strategy
The Entry: Every 28 days, sell an S&P 500 put option with a strike price exactly 7% below the current market price.
The Philosophy: Since 2000, the S&P 500 has finished a month down more than 7% only 6.4% of the time. You are betting on the 93.6% probability that the market stays within its normal range.
The Rollout Protocol (The First Line of Defence)
If the market begins to drop, we do not wait to be hit. We use a proactive "Roll" to defer losses and lower our strike.
The Trigger: If the S&P 500 price drops to within 2% of your strike.
The Action: Close the current trade (Buy to Close) and simultaneously sell a new put (Sell to Open) 28 days further out and as far down as possible to achieve a "net breakeven" or a small credit.
The Benefit: This "kicks the can down the road," reduces your breakeven price allowing time for the market to stabilize without realizing a loss.
4.3: The Triple Lock Defence System
Establishing the rules that protect your capital when the "Roll" isn't enough.
Rule 1: The Trend Filter (200-DMA)
The Rule: Only sell puts when the S&P 500 is trading ABOVE its 200-Day Moving Average.
The Stat: Since 2000, 85% of the S&P 500's worst months occurred while the index was below its 200-DMA.
Rule 2: The VIX 35 Emergency Lever
The Rule: Close all positions if the VIX closes above 35 for two consecutive days.
The Benefit: This is your "Panic Button." When the VIX hits 35, the market is no longer orderly, and "Rolling" becomes mathematically dangerous due to exploding option prices.
Rule 3: The 75% Harvest Rule
The Rule: Close the trade once you have captured 75% of the maximum profit.
4.4 Managing IG Margin & Position Sizing
The 40% Safety Rail
In a traditional stock account, if you have €10,000, you buy €10,000 worth of shares. In an IG Spread Betting account, you are trading on Margin. This means you only need a small deposit to control a large position.
1. What is Margin?
Think of Margin as a "Security Deposit." When you sell a US 500 Put, IG doesn't take the full value of the trade from your account.
Instead, they "lock" a portion of your cash to cover potential losses. This is your Required Margin.
As long as the trade is open, you cannot spend or withdraw that locked cash.
2. The Share Navigator 40% Guideline
The biggest mistake beginners make is using 100% of their available cash for margin. If the market drops slightly, IG will trigger a "Margin Call" and close your trades at a loss.
The Golden Rule: Never allow your total "Required Margin" to exceed 40% of your total account value. This leaves 60% of your cash as a "Buffer" to handle market swings and to allow you to "Roll the Position" (repair the trade) if needed.
3. Position Sizing: The "12 per 10K" Rule
To stay under that 40% safety rail specifically for the US 500 Short Put, we use a simple "Rule of Thumb" based on your account balance:
Account Value: €5,000
Recommended Max Bet: $6 per point
Account Value: €10,000
Recommended Max Bet: $12 per point
Account Value: €20,000
Recommended Max Bet: $24 per point
Why this math works: At $12 per point, your margin requirement on IG will typically sit well below the 40% threshold. This gives you the "Oxygen" required to survive a 2% market dip and execute your Lifeline Protocol without IG closing you out prematurely.
👨🏫 Mentor Insight: Don't Outrun Your Cover
"Stephen here. I’ve seen traders with great strategies go bust because they were 'too big' for their account. If you trade $30 per point on a €10k account, you are a 'dead man walking' if the S&P 500 drops just 1%. By sticking to the 12 per 10K rule, you are ensuring that even if the market wobbles, you have the capital to stay calm, stay in the trade, and roll it out for a profit later."
4.5: Statistical Stress Test (2000–2026)
Goal: Proof of Concept through the Lens of History
It is easy to trade when the market is going up. A professional strategy is defined by how it behaves when the world is falling apart. Here is how our Triple-Lock Defence would have protected your capital during the four major crashes of the 21st century.
1. The Dot-com Bubble (2000–2002)
S&P 500 Result: -49% Decline.
Strategy Outcome: SAFE. Our 200-DMA filter would have turned red early in the trend. You would have stayed in cash, watching the crash from the sidelines while others lost half their wealth.
2. The Financial Crisis (2008)
S&P 500 Result: -56% Decline.
Strategy Outcome: SAFE. While the market was dropping, our VIX Lever would have triggered in September 2008. This would have kept you out of the market during the catastrophic -16% crash in October.
3. The COVID Crash (2020)
S&P 500 Result: -34% Decline.
Strategy Outcome: SAFE. This was a "Flash Crash," but the math doesn't lie. The 200-DMA broke early, and the VIX spiked almost immediately, triggering our "Exit" protocol at the very start of the panic.
4. The "Slow Bleed" (2022)
S&P 500 Result: -19% Decline.
Strategy Outcome: SAFE. 2022 was a frustrating year for investors, but because the S&P 500 stayed below its 200-day moving average for most of the year, our system would have kept you in cash and protected your principal.
👨🏫 Mentor Insight: The Art of Doing Nothing
"Stephen here. Many people think professional trading is about being in the market every single day. It’s not. It’s about knowing when the 'Probability of Profit' has vanished. As you can see, the Triple-Lock isn't just a set of rules; it’s your shield. It ensures that you are only 'The House' when the odds are in your favour, and a 'Spectator' when the market is broken."
5. You Are Now a Strategic "Insurer"
Congratulations! You have successfully mastered the mechanics of the Short Put Income Engine. Through this course, you have learned the professional distinction between "gambling" on price and "insuring" a probability. You understand that we are not punters; we are a strategic business with an 85% probability of success and a strict 40% margin safety rail.
The Knowledge Recap:
The 85% Rule: You only enter trades where the math is heavily in your favor.
Downside Leeway: You know how to win even if the market moves sideways or falls slightly.
The VIX Filter: You understand that "Fear is our Friend" and we only sell when premiums are "fat."
The Triple-Lock: You have the historical proof that our defensive rules protect you from Black Swan events.
But theory alone doesn't pay the bills. In the next course, we move inside the IG Index Platform. I will show you exactly how to find the US 500, how to set your "points per bet," and how to click 'Place Deal' with total confidence.
🚨 STOP: Don't Trade Alone
Your US 500 Strategy Call & Mentoring Trial
Before you place your first "Live" trade, I want to personally vet your plan. Trading the US 500 Challenge is a professional endeavor, and every professional has a coach.
1. Book Your 1-on-1 Strategy Call
If you have opened your IG account but feel a bit "tech-shy" about the interface, or if you just want a second pair of eyes on your first setup, schedule a 15-minute call with me. We will jump on Zoom, look at your screen together, and ensure your account is configured for the Tax-Free Challenge correctly.
2. Join the Thursday Live Meeting (Free Pass)
Every Thursday at 1 PM (Irish Time), our community of "Smarter Bears" meets to scan the S&P 500. We look at the VIX, calculate our Theta, and call out our Strike Prices together.
The Goal: To move you from "Student" to "Trader" in a safe, supported environment.
The Gift: As a graduate of Course 2, you have a 1-Week Free Pass to join us live.
👨🏫 Mentor Insight: The Power of 'Over-the-Shoulder' Learning
"Stephen here. I can teach you the math in these lessons, but the 'feeling' of a trade is best learned by watching me do it live. In our Thursday meetings, you'll see me pass on trades because the VIX is too low, or roll a position because the 200-DMA was hit. Watching a professional manage real risk is the fastest way to gain your own confidence. See you on Thursday!"
Next Up: Course 3 – Executing the US 500 Challenge on IG Index
Module 4: Platform Execution Guide (IG Index)
Now that you understand the strategy and the risks, here is exactly how to place the trade on the IG platform.
Phase 1: Finding the Market
Open the Options Menu: From the left-hand sidebar of your IG dashboard, click on Options.
Filter by Asset Class: Ensure the Indices button is selected at the top of the main window.
Locate US 500: Scroll down the list to find US 500. Click the small arrow to the right of the name to expand the available expiries.
Phase 2: Selecting the Expiry & Strike
Choose Your Date: From the dropdown list, select the specific expiry (e.g., 30 Jan 26). This opens the Option Chain.
Identify the Puts Side: The screen is split into Calls (left) and Puts (right). Look only at the Puts side for this strategy.
Find the Strike Price: Scroll down the center column until you find your target strike (e.g., 6500).
Phase 3: Configuring the Deal
Open the Ticket: Click the Sell button (highlighted in red) next to your chosen strike. This opens the Deal Ticket on the right.
Verify "Sell" Direction: Double-check that the Sell tab is active (red). Selling a Put is how we collect the premium income.
Set Your Size: Enter your trade amount in the Size box (e.g., $10 per point).
Phase 4: Execution & Monitoring
Check Margin: Review the Margin requirement at the bottom of the ticket. Ensure you have sufficient funds to cover the trade.
Place the Deal: Click the green Place deal button.
Monitor Live: Your trade will appear in the Positions tab. Track your Opening price, Latest price, and live Profit/Loss here.
Phase 5: Closing the Trade & Taking Profits
Trading isn't just about the entry; it’s about the exit. While many short puts will expire worthless (allowing you to keep the full premium), professional traders often use Limit Orders to close trades early. This allows you to 'lock in' 50-80% of your maximum profit without waiting for the final expiry, reducing your 'time at risk' in the market."
Supporting Text / Key Steps from the Video: To place a limit order to close your short put on IG Index, follow these steps:
Locate Your Position: Go to the 'Positions' tab in your IG dashboard.
Enter'Limit Order': This tells IG to only execute the trade if the option price drops to your target level (e.g., $20 if you sold it for $30).
Set the Price: Enter your target profit price.
Pro Tip: Many Share Navigator members set their limit order at 75% of the initial premium collected to automate their profit-taking.
⚠️ Key Reminders
Check the Label: Always ensure the ticket says US 500 PUT before clicking.
Safety Buffer: We specifically choose strikes below the current market price.
The 30% Margin Rule: Pick your position size based on the margin you are comfortable with. We suggest you never let your total margin exceed 30% of your account value. This protects you from being automatically closed out during a temporary market dip.
'Invest with Confidence'