how to use thinkorswim - beyond insights€¦ · done order entry copyright © 2010 beyond insights...
TRANSCRIPT
How to use Thinkorswimto Buy a Bull Call Spreadwith simple Profit Taking
and Stop Losswith Condition
by Beyond Insights Sdn Bhd
Copyright © 2010 Beyond Insights Sdn. Bhd 1
Make sure there is “paperMoney” below Thinkorswim Logo
(This is to ensure you are in the Demo Account)
Copyright © 2010 Beyond Insights Sdn. Bhd 5
You may Click the Down/Right Arrow next to “UNDERLYING” or “OPTIONS” to hide/unhide the details of the Stock or Options
Copyright © 2010 Beyond Insights Sdn. Bhd 8
Click on Right Arrow of Feb 11 Expiration to see the next level detail of the Option Chain
Copyright © 2010 Beyond Insights Sdn. Bhd 9
Next level detail of theFeb 11 Expiration Option Chain
Copyright © 2010 Beyond Insights Sdn. Bhd 10
46 days left from expiration
Feb 2011 expiration
Call Options Put Options
You may change the number next to “Strikes” to change how many strike prices you want to display
Copyright © 2010 Beyond Insights Sdn. Bhd 11
4 Strike Price
The # of “Strikes” is CHANGED from 4 to 6 now
Copyright © 2010 Beyond Insights Sdn. Bhd 12
6 Strike Price
We can do a BULL CALL (Sell $13 Call & Buy $12 Call) or BULL PUT (Sell $13 Put & Buy $12 Put)
Copyright © 2010 Beyond Insights Sdn. Bhd 15
Support Sell $13 Call
Buy $12 Call
Select the “Strike Price” 1 level below the Support ($12 Strike in this case)
Copyright © 2010 Beyond Insights Sdn. Bhd 16
Right click on the bid or ask of the $12 Strike Call > Select “BUY” > Select “Vertical”
Copyright © 2010 Beyond Insights Sdn. Bhd 17
The ORDER ENTRY Window will reflect the $12 Strike Call Vertical Spread you have just entered
Copyright © 2010 Beyond Insights Sdn. Bhd 18
This is a BULL CALL Income Strategy :Buy $12 Call &Sell $13 Call
Check to confirm IF this is indeed a LIMIT Order and DEBIT Spread
Copyright © 2010 Beyond Insights Sdn. Bhd 19
LIMIT Order
DEBIT Spread
Edit the # of Contract directly (or use the up/down arrow to adjust accordingly)
Copyright © 2010 Beyond Insights Sdn. Bhd 20
Zoom In : Before vs. After(Price Unlock to Lock & Day to GTC)
Copyright © 2010 Beyond Insights Sdn. Bhd 25
Before
After
On the Order Entry Section, Right click on the “VERTICAL” & Select “Create Opposite Order”
(Do this twice, you will see 1 buy entry and two sell limits)
Copyright © 2010 Beyond Insights Sdn. Bhd 28
Right click on the “VERTICAL” again(Green Background) &Select “Create Opposite Order”(This is to create the 2nd Opposite Order)
Copyright © 2010 Beyond Insights Sdn. Bhd 30
Change the 1st Opposite Order to Take Profit at $0.96 (before Max Profit of $1.00),you can adjust to smaller value within 5cts range
Copyright © 2010 Beyond Insights Sdn. Bhd 32
1st Opposite Order Changed from $0.75 to $0.96 (This setting is for Profit Taking)
Copyright © 2010 Beyond Insights Sdn. Bhd 33
Now Click the “Gear” icon next to the 2nd
Opposite Order to set the condition to CUT LOSS
Copyright © 2010 Beyond Insights Sdn. Bhd 34
The Order Rules Window shall pop out when you click the “Gear” icon
Copyright © 2010 Beyond Insights Sdn. Bhd 35
Edit the Threshold (This is the Stock Price that will trigger CUT LOSS at Market Price)
Copyright © 2010 Beyond Insights Sdn. Bhd 41
Support minus Max Gain($13 - $0.25)