This video is exactly what I've been looking for but for some reason I haven't been able to find somebody that has made a video explaining this as well as you have so thank you so much for that! Glad I followed you when I did!
That is very useful. Do you have a video that shows how to place 3 leg option order with condition on the Stock price. For eample buy option when stock is over x, close sell option when stock is at y and stop loss sell option when stock is at z?
Great video. Can this process be optimized any, as in saving a template or something. I trade options off the underlying chart, and want to get my head out of the way.
Good explanation but dangerous advice on the sell stop? You won't often get filled at the midpoint when a stock is falling fast, and losing a few bucks on the spread is better than blowing past your stop.
Could you make a tutorial of how to trade options base on the option price and other factors, like the delta and gamma, etc. Thank you very much for all you do. This channel is helpful.
If you could help clear this up, it would mean alot. When trading options on TOS, it shows me the "Mark" as the option premium (bid/ask) and NOT the stock price. So when trying to setup a conditional limit order, I get confused trying to set the "Mark" because I don't know if I am to use the stock price or the option premium amount. I am trying to get around it by selecting "ask/bid %" in the limit part and I use "ask" in the conditional part. I hope that will work. But ultimately that is the issue for me. using "Mark", you say is the stock price, but again, when I use TOS mobile, it shows me the "Mark" in my option as the option premium. HOW DO YOU SET A STOP LOSS ON AN OPTION YOU ARE ATTEMPTING TO BUY BUT HAVENT BOUGHT YET AND USE THE OPTION COST/PREMIUM INSTEAD OF STOCK PRICE?
I was wondering if one of these conditional buy orders (order with Rules) once executed could trigger another conditional order, like a trailing stop order. I managed to do this by creating a conditional buy order, then right-clicking on the order > Create duplicate order. In the duplicate order I changed 'BUY' to 'SELL' and set it a TRAILSTOP. Course it could be set to anything, like a study. Below the orders I made sure the Advanced Order dropdown was set to 1st trgs Sequence.
You can have it trigger another order, but if you're doing it the way you just said, remember to remove the condition from the second order. If you set the conditions first then right click on it and duplicate, the same conditions will be added to the sell ticket
@@shortthestrike thanks. it looks like i could have made my life easier by right-clicking on what i wanted to buy and selecting Buy custom > With STOP then add conditions to the buy order and change the stop to TRAILSTOP
In paper trading options, I often get unrealistic fills. Eg: market is $2, I get filled at $1.60. This can lead to an inflated sense of success. Is there a way to tell ToS to fill at a zero offset without having to set a manual threshold in the Conditions pane? Thanks
After I enter all the conditions and hit "save" TOS will not allow me to hit "confirm and send" because I have a notice on the far left bottom of the order screen that reads "Single Order must have positive limit price." Any suggestions as to why I cannot complete this order?
I figured out my mistake on this and now it works fine. My next question concerns the closing order method. I assume you cannot create the closing order until and unless the initial order to buy the option is triggered?
It has become obvious now that you do not respong to or answer any questions but just wanted to add that I am now entering these trades correcttly and not one of them that has reached the stock price I specify has been filled. So for whatever reason, this simply does not work for me. I know I am now entering all the info correctly but on all of my call options where the stock price has reached or gone above the price I stipulate, no trades get triggered. If anyone watching thise video has any ideas about why this method does not seem to work I would appreciate any input. Thanks
@@dashermike3207 One issue may be that it only shows DAY on his example so the order is canceled at the end of the day. If you put in GTC, it will go until the underlying order is expired or multiple days.
There seems to be a lot of confusion about the difference between order types 'MARK' and MARKET'. Apparently MARK means one thing for options, but another thing for stocks. A guy on Reddit said, "Mark for options is mid between bid and ask. Mark on stocks is last if between bid ask. Bid if quote is higher and ask if quote is lower." Huh? To make things more confusing, if you are Active Trader trying to set up a 'TRG w/bracket' for stocks (or options) it only displays MARK and ASK/BID, but not MARKET.
That’s where things get confusing, technically the “mark” price can be the bid, ask, or last traded price. It all depends on where the last trade happened. If happened between the bid, ask, the mark should be the last traded price. If at or above the ask, it’ll be the ask. If below the bid, it would be the bid. It’s attempting to display the most “accurate” price at that second but isn’t always great. If you put the trigger based off the “mark” on the stop or bracket, it will look at either the last trade going through your activation price or the bid/ask depending if you’re buying/selling. It’s all a bit confusing to explain over text, but hope that helps!
That would be if you only wanted your stop to be activated by the price hitting or surpassing the bid/ask. So for example, let’s say a stock was trading for $10 and you wanted to stop out of it ever dropped below 9.50. But what price has to drop below 9.50? The last trade, the ask? That’s where we can either select mark, which means the stop would activate if either the stock trades below 9.50 or the ask falls below 9.50. If you only wanted it to activate if the ask fell below 9.50, then you’d select ask. Honestly, not really much of a concern these days unless you’re trading a super illiquid stock.
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This video is exactly what I've been looking for but for some reason I haven't been able to find somebody that has made a video explaining this as well as you have so thank you so much for that! Glad I followed you when I did!
That is very useful. Do you have a video that shows how to place 3 leg option order with condition on the Stock price. For eample buy option when stock is over x, close sell option when stock is at y and stop loss sell option when stock is at z?
This was extremely helpful, thank you for taking the time to make this.
Thank you, hope it helps!
Great video. Can this process be optimized any, as in saving a template or something. I trade options off the underlying chart, and want to get my head out of the way.
@shortthestrike, another awesome video bro.... You are one of the best teachers on this TOS platform, thank you for the support.
If this is not a same day trade, you will need to change DAY to GTC. I do overnight options trades sometimes and need to do GTC.
Good explanation but dangerous advice on the sell stop? You won't often get filled at the midpoint when a stock is falling fast, and losing a few bucks on the spread is better than blowing past your stop.
amazing explanation, very easy to follow, thank you
Thanks, hope it helps!
thank you so much for providing this valuable information! it really helps...
You are an excellent guide
Thank you!
How do you do the opposite so buying a stock conditional to a specific option price
Exactly what I needed! Thanks
Could you make a tutorial of how to trade options base on the option price and other factors, like the delta and gamma, etc. Thank you very much for all you do. This channel is helpful.
Is their a way to automate the conditions with a percentage threshold???
you explain everything perfectly! thank you
Do we need to cancel the SL order before selling the option contract for profits?
Nice video man. Thank you
How would you set this up as a custom order template?
This is a lot.
But thank you for making these videos for us😊
If I buy with OCC, should I use "Limit offset 0.00 linked to Mark" for all 3 legs?
Can we do OCO based on underlying stock price.
If you could help clear this up, it would mean alot. When trading options on TOS, it shows me the "Mark" as the option premium (bid/ask) and NOT the stock price. So when trying to setup a conditional limit order, I get confused trying to set the "Mark" because I don't know if I am to use the stock price or the option premium amount. I am trying to get around it by selecting "ask/bid %" in the limit part and I use "ask" in the conditional part. I hope that will work.
But ultimately that is the issue for me. using "Mark", you say is the stock price, but again, when I use TOS mobile, it shows me the "Mark" in my option as the option premium.
HOW DO YOU SET A STOP LOSS ON AN OPTION YOU ARE ATTEMPTING TO BUY BUT HAVENT BOUGHT YET AND USE THE OPTION COST/PREMIUM INSTEAD OF STOCK PRICE?
Thank you for the great content.
How did you highlight the % Change boxes to Green and Red on your Monitor page?
You are the SAVANT of TOS
Thanks
Thank you!
👍Great Video
I was wondering if one of these conditional buy orders (order with Rules) once executed could trigger another conditional order, like a trailing stop order. I managed to do this by creating a conditional buy order, then right-clicking on the order > Create duplicate order. In the duplicate order I changed 'BUY' to 'SELL' and set it a TRAILSTOP. Course it could be set to anything, like a study. Below the orders I made sure the Advanced Order dropdown was set to 1st trgs Sequence.
You can have it trigger another order, but if you're doing it the way you just said, remember to remove the condition from the second order. If you set the conditions first then right click on it and duplicate, the same conditions will be added to the sell ticket
@@shortthestrike thanks. it looks like i could have made my life easier by right-clicking on what i wanted to buy and selecting Buy custom > With STOP then add conditions to the buy order and change the stop to TRAILSTOP
The time in force is left as day? Is this ignored or do you need to make the GTC?
Honestly, just completely forgot to flip it over to GTC
@@shortthestrike Thought so...Thought I might be missing something
In paper trading options, I often get unrealistic fills. Eg: market is $2, I get filled at $1.60. This can lead to an inflated sense of success. Is there a way to tell ToS to fill at a zero offset without having to set a manual threshold in the Conditions pane? Thanks
Thank you
I tried it but it is not working for me
Does anyone use this to close at price target to take profit
After I enter all the conditions and hit "save" TOS will not allow me to hit "confirm and send" because I have a notice on the far left bottom of the order screen that reads "Single Order must have positive limit price." Any suggestions as to why I cannot complete this order?
I figured out my mistake on this and now it works fine. My next question concerns the closing order method. I assume you cannot create the closing order until and unless the initial order to buy the option is triggered?
It has become obvious now that you do not respong to or answer any questions but just wanted to add that I am now entering these trades correcttly and not one of them that has reached the stock price I specify has been filled. So for whatever reason, this simply does not work for me. I know I am now entering all the info correctly but on all of my call options where the stock price has reached or gone above the price I stipulate, no trades get triggered. If anyone watching thise video has any ideas about why this method does not seem to work I would appreciate any input. Thanks
@@dashermike3207 One issue may be that it only shows DAY on his example so the order is canceled at the end of the day. If you put in GTC, it will go until the underlying order is expired or multiple days.
@@dashermike3207 I keep getting this same issue. How did you fix it?
Thanks ! I'm afraid you're gonna be asked to do something similar for Interactive Brokers :)
I don't have the "or" section in my dialog. Only Submit at and Cancel at.
There seems to be a lot of confusion about the difference between order types 'MARK' and MARKET'. Apparently MARK means one thing for options, but another thing for stocks. A guy on Reddit said, "Mark for options is mid between bid and ask. Mark on stocks is last if between bid ask. Bid if quote is higher and ask if quote is lower." Huh? To make things more confusing, if you are Active Trader trying to set up a 'TRG w/bracket' for stocks (or options) it only displays MARK and ASK/BID, but not MARKET.
That’s where things get confusing, technically the “mark” price can be the bid, ask, or last traded price. It all depends on where the last trade happened. If happened between the bid, ask, the mark should be the last traded price. If at or above the ask, it’ll be the ask. If below the bid, it would be the bid.
It’s attempting to display the most “accurate” price at that second but isn’t always great. If you put the trigger based off the “mark” on the stop or bracket, it will look at either the last trade going through your activation price or the bid/ask depending if you’re buying/selling.
It’s all a bit confusing to explain over text, but hope that helps!
@@shortthestrike thanks. i will re-read your comment until i understand it. kinda begs the question... what is the ASK/BID then?
That would be if you only wanted your stop to be activated by the price hitting or surpassing the bid/ask. So for example, let’s say a stock was trading for $10 and you wanted to stop out of it ever dropped below 9.50.
But what price has to drop below 9.50? The last trade, the ask? That’s where we can either select mark, which means the stop would activate if either the stock trades below 9.50 or the ask falls below 9.50. If you only wanted it to activate if the ask fell below 9.50, then you’d select ask.
Honestly, not really much of a concern these days unless you’re trading a super illiquid stock.
thanks