Tracking Trades

It is important for you to acquire an appreciation for the progress of your trades over time. You need to develop a feel for the change in the price of an option as the underlying stock price changes and as time passes. The best way to achieve this is to systematically track your trades.

After you have initiated a trade, begin a tracking process. You can do this either in a spreadsheet or simply by hand with a sheet of paper. Enter the symbol for the underlying stock at the left end of the first row and immediately to the right indicate the price of the stock when the trade was entered. On the row below, just under the stock symbol, enter the option that you have purchased along with the number of contracts (for example, 5 Nov ...

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