how to use thinkorswim - beyond insights€¦ · done order entry copyright © 2010 beyond insights...

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

Click on “paperMoney” button


Enter your Username and PasswordClick “OK” to login


Loading and Connecting to server…


Make sure there is “paperMoney” below Thinkorswim Logo

(This is to ensure you are in the Demo Account)


Select the “Trade” tab &Click “All Products”


Enter the Stock symbol(“DELL” in this example)


You may Click the Down/Right Arrow next to “UNDERLYING” or “OPTIONS” to hide/unhide the details of the Stock or Options


Click on Right Arrow of Feb 11 Expiration to see the next level detail of the Option Chain


Next level detail of theFeb 11 Expiration Option Chain


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


4 Strike Price

The # of “Strikes” is CHANGED from 4 to 6 now


6 Strike Price

We believe there is Support @ $13.25


Support

Remember our Pattern 1?


Support

We can do a BULL CALL (Sell $13 Call & Buy $12 Call) or BULL PUT (Sell $13 Put & Buy $12 Put)


Support Sell $13 Call

Buy $12 Call

Select the “Strike Price” 1 level below the Support ($12 Strike in this case)


Right click on the bid or ask of the $12 Strike Call > Select “BUY” > Select “Vertical”


The ORDER ENTRY Window will reflect the $12 Strike Call Vertical Spread you have just entered


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


LIMIT Order

DEBIT Spread

Edit the # of Contract directly (or use the up/down arrow to adjust accordingly)


# of Contract Reduced from 10 to 1 in this example


Click the “Lock” to lock our Entry Price


Edit the “Entry Price” to $0.75 in this example


Change the Day Order to Good Till Cancel Order


Zoom In : Before vs. After(Price Unlock to Lock & Day to GTC)


Before

After

Right Click on Advanced OrderSelect the “1st trgs OCO”


“Single Order” Changed to “1st trgs OCO”


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)


1st Opposite Order created(Maroon Color Background)


Right click on the “VERTICAL” again(Green Background) &Select “Create Opposite Order”(This is to create the 2nd Opposite Order)


2nd Opposite Order created(Maroon Background)


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


1st Opposite Order Changed from $0.75 to $0.96 (This setting is for Profit Taking)


Now Click the “Gear” icon next to the 2nd

Opposite Order to set the condition to CUT LOSS


The Order Rules Window shall pop out when you click the “Gear” icon


Select “MARKET” for Price Rules


Price Rules = MARKET


Click on Symbol (Enter DELL)


Select “MARK” for Method


Select “AT OR BELOW” for Trigger


Edit the Threshold (This is the Stock Price that will trigger CUT LOSS at Market Price)


Support minus Max Gain($13 - $0.25)

Click “OK” to close the Order Rules Window


Click “Confirm and Send” to submit Order Entry


The Order Confirmation Dialog Window will pop out


Click “Send” to confirm sending the Entry Order


DONE Order Entry


how to use thinkorswim - beyond insights€¦ · done order entry copyright © 2010 beyond insights...

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