How to use Thinkorswim - Beyond Insights...Title What is Options Author Jaren-Goh Created Date 12/27/2010 9:06:17 PM

How to use Thinkorswimto Buy a Call Option

with simple Profit Takingand Stop Loss

using Bracket Order

by Beyond Insights Sdn Bhd

Copyright © 2010 Beyond Insights Sdn. Bhd 1

Click on “paperMoney” button


Enter your Username and PasswordClick “OK” to log into Thinkorswim


Loading and Connecting to server…


Check if it is “paperMoney” before proceeding


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


Enter the Stock symbol


Toggle the ‘Triangle-icon’ to hide/unhide the detail of Stock & Options


Click the ‘Triangle-icon’ to see the Option Chain (Jan 11 in this example means 3rd Friday of Jan 2011)


Enter the # of Strike Price you wanted to see (4 Strike Prices in this example)


27 days from expiration

Jan 2011 expiration

Call OptionsPut Options

Assume you are Bullish about Microsoft (MSFT)and you believe there is good Support @ $27.00.

So you decide to Buy a $27.50 Strike Price Call Option (closest strike Price available)


Support

Right click on the Ask Price of the $27.5 Strike Call > Select “BUY Custom” > Select “with OCO Bracket”


$27.5 Strike Price

Ask Price

Call Options

Bid Price

The ORDER ENTRY Window will reflect the $27.5 Call with OCO Bracket that we have just entered


This is a BULL CALL Income Strategy :Buy $26 Call &Sell $27.5 Call

Default Profit Taking is $1 Above Entry Price &Default STOP LOSS is $1 Below Entry Price


This is a BULL CALL Income Strategy :Buy $26 Call &Sell $27.5 Call

ORDER ENTRY

Default Entry Price @ Market Price

Default Profit Taking is $1 above Entry Price

Default STOP LOSS is $1 below Entry Price

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 at our desire price instead of following the market price


“Entry Price” Changed to $0.90 in this example(Assume our plan is to Enter @ $0.90 and Take Profit @ 1.20 and Cut Loss @ $0.60)


Change the Day Order to Good Till Cancel Order(Day to GTC)


Profit Taking Changed to $1.20 and STOP LOSS Changed to $0.60 in this example

(Assume our plan is to Enter @ $0.90 and Take Profit @ 1.20 and Cut Loss @ $0.60)


Profit Taking @ $1.20

STOP LOSS @ $0.60

Good Till Cancel Order

Click “Confirm and Send” to submit Order Entry


A Order Confirmation Dialog Window will pop out


Click “Send” to confirm sending the Entry Order


DONE with Order Entry


Documents

How to use Thinkorswim - Beyond Insights...Title What is Options Author Jaren-Goh Created Date 12/27/2010 9:06:17 PM