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