# Trade inputs

## Ticker

## Stock price ($)

## Current IV % (from TOS options chain)
* Open TOS → Trade tab → Options chain → Implied Volatility column

## 52-week high IV %
* TOS → Options chain → look for highest IV over past year (or use 80 as default estimate)

## 52-week low IV %
* Use 15 as a safe default if unknown

## Open interest on target strike
* TOS options chain → OI column at your ATM or 1-ITM strike

## Bid/Ask spread ($)
* Ask minus Bid at your target strike. Under $0.15 = acceptable.

## Planned expiration (DTE)
* Days to expiration. Use 30-45 DTE for standard swing trades.

## Your planned hold time
* Select hold time
  - 2-5 days
  - 5-15 days
  - 15-20 days

## Run Checklist → Clear all fields

### Checklist results

○ Fill in inputs to run the checklist
* Enter stock price, IV, open interest, spread, DTE, and hold time on the left. The checklist will evaluate all 6 criteria and give you a verdict.

## Strike selection by stock price

| Stock price | Buy this strike       | Never buy         |
|-------------|-----------------------|-------------------|
| $4.00–$6.00| $5 call (ATM)         | $6 or $7 call     |
| $6.00–$8.00| $7 call (ATM/1 ITM)   | $8 or $9 call     |
| $8.00–$10.00| $9 or $10 call       | $11+ call         |
| $10.00–$12.00| $10 or $11 call     | $13+ call         |
| Rule        | Never go more than $1 OTM on stocks under $10 |

## Expiration by hold time

| Hold time   | Buy this DTE      | Status |
|-------------|-------------------|--------|
| 2–5 days    | 21–30 DTE        | OK     |
| 5–15 days   | 30–45 DTE        | Ideal  |
| 15–20 days  | 45–60 DTE        | OK     |
| Same week   | Weekly options    | Never  |
| Under 7 DTE | Any               | Exit now |

## IV Rank guide

| IVR | Premium cost     | Action          |
|-----|-------------------|------------------|
| 0–20| Very cheap        | Buy calls       |
| 20–30| Affordable       | Buy calls       |
| 30–50| Moderate         | Reduce size     |
| 50–70| Expensive        | Stock preferred  |
| 70+ | IV crush risk    | Stock only      |

## Position sizing at 100 shares

| Premium cost | Contracts   | Total risk     |
|--------------|-------------|-----------------|
| Under $80    | 1–2         | $80–$160 ✓       |
| $80–$150     | 1           | $80–$150 ✓       |
| $150–$250    | 1 (half)    | $150–$250 ⚠      |
| Over $250     | 0 — skip options | Buy stock instead |
| Stop loss    | Exit when option loses 40–50% of value |