I’ve been searching all over for a video actually showing you the step by step process in the think or swim interface. 3 years later, this video has just helped me so much. Thank you!
@@TradersArmy I opened up order rules and I was not able to find the area under conditions where you can insert the symbol and actual stock price 6:10 . Any idea of any updates that changed this or how to go about this differently?
Weird....The conditions section is definitely still there and hasn't changed. Can you send me a screenshot to Support@TradersArmy.com to I can see what your seeing? @@nicholashanna5722
Super helpful - excellent video. I was looking for a way to better manage risk while trading options and never even considered an OCO setup like this on a vertical. I have a lot to learn...
Awesome!!! I'm glad it was helpful! I prefer to be fairly hands off after I enter the trade so having these OCO's in place for all my trades really helps with that.
Glad you found it helpful. That's correct...if you'r looking to set your stop based on a specific premium value that is 25% greater than your entry price. However, a word of caution....when you set the stop loss on a premium value vs setting it as a condition order on the underlying, then you do risk getting prematurely stopped out if the options bid x ask spread gets wide at any point derring the day. This is why I prefer to set the exit as a market or limit order tied to the mid price of the option spread, but all based on the underlying stock going against me by more than expected. I hope this helps.
excellent ......very helpful explanation. For some reason when I hit save I am not getting the pop up order confirmation box like you are getting. Any idea as to what setting I might change so that I get this box to show up? Thanks again.
Thank you. I'm glad it was helpful. My first thought on why you're not getting the order confirmation box would be that in the Application Settings, the "Show Order Confirmation' box is unchecked. You can find the box to check if you click on the "Setup" cog in the top right of the platform, and select"Application Settings". Once the window pops up, select "Orders" on the left and on that screen you should see the box to check to "Show Order Confirmation".
Great video. One question. @6:18 The protective stop (155.90) that you typed in the conditions threshold box, where'd it come from? Is that number the same as the break-even of the vertical spread?
Great question! The conditional stop in general is either gonna be based on the short strike becoming ITM, since I would have originally decide to take the trade based on the short strike staying OTM the entire time. So if it trades ITM, I was wrong, and I exit. The only time I adjust the stop would be if the price chart of the stock has a little trap area where that original stop would be, then I adjust to be outside of that trap area. I hope that helps.
Thank you. I'm glad you found it helpful. We have an extensive amount of platform tutorials available on our Website at TradersArmy.com, inclucing videos on the Risk Profile. You'll just need to sign up for a Free Membership to get access to the platform tutotials.
Very informative. How would this work on a long call spread? For example, let's say u want to buy a SPY long vertical spread at . 50db. And your profit target is at .80 cr. How would that opposite order look like? Thanks
I opened up order rules and I was not able to find the area under conditions where you can insert the symbol and actual stock price. Any idea of any updates that changed this or how to go about this differently?
Thank you for this video. Does the thinkorswim app allow you to set the stop loss, or can you only do this from a computer on the website? I’m new to spreads and have been looking for a platform that allows you to exit based on the underlying price…so thanks again for showing how here. I currently use trade stations simulator. If there’s a way to set a stop loss based on stock price, I can’t figure it out.
Since you are buying the 153 put, the second OCO seems redundant. Is it to reduce the amount of capital needed for the trade, or is it to get out of the trade quicker, without waiting for the price to fall even further to 153, where you would incur max loss? Could it also be viewed as guaranteed insurance, in case the OCO doesn't get filled?
It's designed to further minimize the risk in the trade if/when you're proven wrong. The max risk in a trade like this would really hurt, so if we could minimize it, before it hits the long strike, we'll do that. And yes, buying the further OTM strike is to not just offset some of the overall risk, but to drastically reduce margin requirements. Great question!!
So, when I'm entering the credit spread, I'm assuming the underlying price will remain at or above 156 (the short strike in this case). But, if at any point during the life of the trade I'm proven wrong and the stock price drops below 156, I want out. So when setting the stop loss on a credit spread, I set it just below the short strike so that I can exit when proven wrong. This would for sure result in a loss if the traded failed right away, but as more time passes and we get closer to expiration, the loss should be smaller since we're earning Theta (time decay) over time. I hope this helps.
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Very informative, thanks for taking time to make it.
You're welcome, and thanks for watching. I hope it was helpful!
You bet!!!
great video. Thanks for posting.
Awesome! Glad it was helpful.
@@TradersArmy Going to spend some time watching the rest of your videos. Your details are what really make the difference
@@ellsworthcorumiii9674 Thank you. We really appreciate that 🙏🏻
I’ve been searching all over for a video actually showing you the step by step process in the think or swim interface. 3 years later, this video has just helped me so much. Thank you!
Awesome! I'm glad you stumbled on it that you found it helpful. We have a lot more tutorials like this if you haven't stumbled on those yet.
@@TradersArmy I opened up order rules and I was not able to find the area under conditions where you can insert the symbol and actual stock price 6:10 . Any idea of any updates that changed this or how to go about this differently?
Weird....The conditions section is definitely still there and hasn't changed. Can you send me a screenshot to Support@TradersArmy.com to I can see what your seeing? @@nicholashanna5722
Super helpful - excellent video. I was looking for a way to better manage risk while trading options and never even considered an OCO setup like this on a vertical. I have a lot to learn...
Awesome!!! I'm glad it was helpful! I prefer to be fairly hands off after I enter the trade so having these OCO's in place for all my trades really helps with that.
Great explanation!!!
Thank you! Glad you found it helpful.
Easy to follow, exactly what I was looking for. Thanks!
Awesome! 🤙🏼
thanks for the video! in this example, what would constitute a 25% stop loss? buying back for .58?
Glad you found it helpful. That's correct...if you'r looking to set your stop based on a specific premium value that is 25% greater than your entry price.
However, a word of caution....when you set the stop loss on a premium value vs setting it as a condition order on the underlying, then you do risk getting prematurely stopped out if the options bid x ask spread gets wide at any point derring the day.
This is why I prefer to set the exit as a market or limit order tied to the mid price of the option spread, but all based on the underlying stock going against me by more than expected.
I hope this helps.
This is the most detailed video on this I have found thank you.
Glad it was helpful!
Thank you! This is exactly what I was looking for.
You're welcome! Glad you found it helpful.
excellent ......very helpful explanation. For some reason when I hit save I am not getting the pop up order confirmation box like you are getting. Any idea as to what setting I might change so that I
get this box to show up? Thanks again.
Thank you. I'm glad it was helpful. My first thought on why you're not getting the order confirmation box would be that in the Application Settings, the "Show Order Confirmation' box is unchecked. You can find the box to check if you click on the "Setup" cog in the top right of the platform, and select"Application Settings". Once the window pops up, select "Orders" on the left and on that screen you should see the box to check to "Show Order Confirmation".
That was it
Thanks
@@dashermike3207 Awesome! Thanks for confirming.
That is exactly what I was looking for. Just won a subscriber my friend.
Awesome! Thank you 🙏🏻. I'm glad you found it helpful.
Thank you! Great video!
Thank you! Glad you found it helpful!
Great explanation. Thanks
Thank you and you're very welcome. Glad you found it helpful.
Thank you for an excellent explanation. You rock.
Glad it was helpful! 🤘🏻
Great video. One question. @6:18
The protective stop (155.90) that you typed in the conditions threshold box, where'd it come from? Is that number the same as the break-even of the vertical spread?
Great question! The conditional stop in general is either gonna be based on the short strike becoming ITM, since I would have originally decide to take the trade based on the short strike staying OTM the entire time.
So if it trades ITM, I was wrong, and I exit.
The only time I adjust the stop would be if the price chart of the stock has a little trap area where that original stop would be, then I adjust to be outside of that trap area.
I hope that helps.
Thank you - very useful - great job - Do you have a video about how to use the Risk profile? I find it difficult to understand and what to do.
Thank you. I'm glad you found it helpful. We have an extensive amount of platform tutorials available on our Website at TradersArmy.com, inclucing videos on the Risk Profile. You'll just need to sign up for a Free Membership to get access to the platform tutotials.
Thank you! I will sign up and keep you posted. Have a great weekend!
tradersarmy.com/
@@FerrerChacin Sounds good! Thank you, you too.
awesome. Been drinking water from firehose but this really helped. Subscribed.
Awesome!! Glad you found it helpful. 🤘🏻
Good stuff! I'm experimenting with the trailstop % with these in a paper account. You don't happen to have a video like that do you?
Can you do this same video but with BEAR CALL Spreads? If you have already I apologize. I only could see BULL CALL Spreads.
Very informative. How would this work on a long call spread? For example, let's say u want to buy a SPY long vertical spread at . 50db. And your profit target is at .80 cr. How would that opposite order look like? Thanks
hi good video. but can you also show if we position & would like to set profit target and SL
This video does include entry plus stop loss and target exits. Are you asking for something specifically different?
I opened up order rules and I was not able to find the area under conditions where you can insert the symbol and actual stock price. Any idea of any updates that changed this or how to go about this differently?
Sorry, thought I responded to this. Can you send a screenshot to Support@TradersArmy.com of what looks different in your platform?
Thanks Corey!
My pleasure! Thanks for watching.
Thank you for this video. Does the thinkorswim app allow you to set the stop loss, or can you only do this from a computer on the website? I’m new to spreads and have been looking for a platform that allows you to exit based on the underlying price…so thanks again for showing how here. I currently use trade stations simulator. If there’s a way to set a stop loss based on stock price, I can’t figure it out.
Since you are buying the 153 put, the second OCO seems redundant. Is it to reduce the amount of capital needed for the trade, or is it to get out of the trade quicker, without waiting for the price to fall even further to 153, where you would incur max loss? Could it also be viewed as guaranteed insurance, in case the OCO doesn't get filled?
It's designed to further minimize the risk in the trade if/when you're proven wrong. The max risk in a trade like this would really hurt, so if we could minimize it, before it hits the long strike, we'll do that. And yes, buying the further OTM strike is to not just offset some of the overall risk, but to drastically reduce margin requirements. Great question!!
sweet thanks
Shouldn’t your stop be above 156 like 156.50? 155.90 is below 156? Wouldn’t that be a loss?
So, when I'm entering the credit spread, I'm assuming the underlying price will remain at or above 156 (the short strike in this case). But, if at any point during the life of the trade I'm proven wrong and the stock price drops below 156, I want out. So when setting the stop loss on a credit spread, I set it just below the short strike so that I can exit when proven wrong. This would for sure result in a loss if the traded failed right away, but as more time passes and we get closer to expiration, the loss should be smaller since we're earning Theta (time decay) over time. I hope this helps.