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Day Trading Options using ThinkorSwim
Jul 5, 2024
Day Trading Options using ThinkorSwim
Introduction
Discussed how to day trade options using ThinkorSwim's Active Trader.
Importance of subscribing to the channel for more content.
Getting Started
Software Requirement
: Must download the desktop version of ThinkorSwim, not just online login.
Navigation
: Go to Trade -> Active Trader.
Setup
Active Trader Setup
: Can set up one or multiple boxes based on preference.
Auto Send
: Enable Auto Send to execute trades quickly without additional confirmation screens.
If unchecked, you’ll need to confirm trades manually.
Adjusting Quantity
: Go to setup for adjusting the number of shares/trades.
Customizing Buttons
:
Click the gear icon to add or adjust buttons.
Move buttons by clicking, holding, and dragging.
Adding P/L Display
:
Customization can be done via the small gear icon.
Placing Options in Active Trader
Type the stock ticker in to trade the stock directly.
To trade options, select 'Options', type in the desired ticker.
Sometimes a logout/login might be needed if options don't load.
Strikes and Expiration
:
Adjust number of strikes to display.
Expiration dates visible with calls on left, puts on right.
Example Trade
Chose a 417 call option expiring today.
Different methods to buy:
Buy Market
: Fastest method, good for high liquidity options like SPY.
Buy Limit
: Choose specific price; fills only at that price.
Execution
:
Purchased one contract at $52.
Sold quickly for a profit of $11 using Sell Market.
Additional Tips
Joining the Ask
: Can lead to better fills, not instant.
Stop Loss
:
Can place stops to manage risk, adjustable by dragging.
Remember to cancel stop loss before selling to avoid issues.
Conclusion
Encouraged viewers to ask questions or suggest improvements via Instagram DMs.
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