How to use Thinkorswim to Buy a Call Option with simple Profit Taking and Stop Loss with Condition by Beyond Insights Sdn Bhd Copyright 2010 Beyond Insights Sdn. Bhd 1
Click on papermoney button Copyright 2010 Beyond Insights Sdn. Bhd 2
Enter your Username and Password Click OK to login Copyright 2010 Beyond Insights Sdn. Bhd 3
Loading and Connecting to server Copyright 2010 Beyond Insights Sdn. Bhd 4
Make sure you see papermoney below the Thinkorswim Logo (This is to ensure you are in Demo Account) Copyright 2010 Beyond Insights Sdn. Bhd 5
Select the Trade tab & Click All Products Copyright 2010 Beyond Insights Sdn. Bhd 6
Enter the Stock symbol ( MSFT in this example) Copyright 2010 Beyond Insights Sdn. Bhd 7
You may Click the Down/Right Arrow next to UNDERLYING or OPTIONS to hide/unhide the detail of Stock or Options Copyright 2010 Beyond Insights Sdn. Bhd 8
Click on Right Arrow of Jan 11 Expiration to see the next level detail of Options Copyright 2010 Beyond Insights Sdn. Bhd 9
Next level detail of Jan 11 Expiration Options Call Options Put Options Jan 2011 expiration 27 days left from expiration Copyright 2010 Beyond Insights Sdn. Bhd 10
You may change the # next to Strikes to list down the # of Strike Prices you wanted to see (4 Strike Prices in this example) 4 Strike Price Copyright 2010 Beyond Insights Sdn. Bhd 11
Assume you are Bullish about MSFT and you believe there is good Support @ $27.00. You decided to Buy a $27.50 Strike Price Call Option Support Copyright 2010 Beyond Insights Sdn. Bhd 12
Right click on the Ask Price of the $27.5 Strike Call > Select BUY Custom > Select with OCO Bracket Call Options $27.5 Strike Price Bid Price Ask Price Copyright 2010 Beyond Insights Sdn. Bhd 13
The ORDER ENTRY Window shows the $27.5 Strike Call with OCO Bracket we have entered This is a BULL CALL Income Strategy : Buy $26 Call & Sell $27.5 Call Copyright 2010 Beyond Insights Sdn. Bhd 14
Default Setting in ORDER ENTRY Window Market Ask Price Default Setting is Day Order Default lot size = 10 contracts ORDER ENTRY Default Entry Price Unlock (Price follow Market) Default Entry Price @ Market Price 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 Copyright 2010 Beyond Insights Sdn. Bhd 15
You may edit the # of Contract directly (or use the up/down arrow to adjust the # accordingly) Copyright 2010 Beyond Insights Sdn. Bhd 16
The # of Contract reduced from 10 to 1 in this example Copyright 2010 Beyond Insights Sdn. Bhd 17
Click the Lock icon to Lock our Entry Price at our desired price instead of following the market price Entry Price will continue to change accordingly to Market Price in Unlock Mode Copyright 2010 Beyond Insights Sdn. Bhd 18
Entry Price switched to Lock Mode Copyright 2010 Beyond Insights Sdn. Bhd 19
Change the Entry Price from $1.14 to $0.90 (You may edit it directly or use the up/down arrow) Copyright 2010 Beyond Insights Sdn. Bhd 20
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 @ Market Price IF Stock go below $27.10) Copyright 2010 Beyond Insights Sdn. Bhd 21
Change the Day Order to Good Till Cancel Order (Day to GTC) Copyright 2010 Beyond Insights Sdn. Bhd 22
Good Till Cancel(GTC) Order Copyright 2010 Beyond Insights Sdn. Bhd 23
Click the Chain icon IF you do not want the Profit Taking and STOP LOSS to auto adjust itself from Entry Price Notice Profit Taking is always $1 above Entry Notice STOP LOSS is always $1 below Entry Copyright 2010 Beyond Insights Sdn. Bhd 24
Auto Adjust (Link) is turned off Copyright 2010 Beyond Insights Sdn. Bhd 25
Adjust the Profit Taking to $1.20 and STOP LOSS to $0.60 (Assume our plan is to Enter @ $0.90 and Take Profit @ 1.20 and Cut Loss @ Market Price IF Stock go below $27.10) Profit Taking @ $1.20 STOP LOSS @ $0.60 Copyright 2010 Beyond Insights Sdn. Bhd 26
Change the Day Order to GTC for both the Sell Entry (Assume our plan is to Enter @ $0.90 and Take Profit @ 1.20 and Cut Loss @ Market Price IF Stock go below $27.10) Copyright 2010 Beyond Insights Sdn. Bhd 27
Day Order Changed to GTC Order for both the Sell Entry Good Till Cancel Order Copyright 2010 Beyond Insights Sdn. Bhd 28
Click on the Gear icon of the STOP LOSS Sell Entry Copyright 2010 Beyond Insights Sdn. Bhd 29
The Order Rules Window pops out Copyright 2010 Beyond Insights Sdn. Bhd 30
Select MARKET for Price Rules Copyright 2010 Beyond Insights Sdn. Bhd 31
Enter Stock Name under the Symbol (Enter MSFT in this example) Copyright 2010 Beyond Insights Sdn. Bhd 32
Select MARK for Method Copyright 2010 Beyond Insights Sdn. Bhd 33
Select AT OR BELOW for Trigger Copyright 2010 Beyond Insights Sdn. Bhd 34
Enter the Stock Price for Threshold STOP LOSS will trigger IF Stock Price go below this # (Enter $26.50 in this example) Copyright 2010 Beyond Insights Sdn. Bhd 35
Click OK to submit the condition set in Order Rules Copyright 2010 Beyond Insights Sdn. Bhd 36
Condition set for STOP LOSS Copyright 2010 Beyond Insights Sdn. Bhd 37
Click Confirm and Send to submit Order Entry Copyright 2010 Beyond Insights Sdn. Bhd 38
Order Confirmation Dialog Window shall pop out Copyright 2010 Beyond Insights Sdn. Bhd 39
Click Send to confirm sending the Entry Order Copyright 2010 Beyond Insights Sdn. Bhd 40
DONE Order Entry Copyright 2010 Beyond Insights Sdn. Bhd 41