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.
• Importance of subscribing and enabling notifications for future videos.