I just opened a brokerage account to trade options. I am thinking making my first options trade, but I don’t want to make any mistakes. I have a balance of 5K for this trade.
So let’s say that I think Sears will drop to $8 on ER day next week. Sears is at $9.45 per share at the moment. How do I short Sears to make the most profit using option chains?
Would something like this looks right if my predicted target price is $8?
SHLD 06/09/2017 8.00 P
Any assistance you can provide is greatly…