How to setup Interactive Brokers for Options Trading
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- Опубликовано: 8 апр 2020
- How to setup Interactive Brokers for Options Trading. Interactive brokers is a great platform for trading options strategies for monthly income because of it's low fees. With the right setup it is easy to see what is going on in the market, look at the options chain at a glance while sorting my watchlist by IV Rank (52IVR) this setup doesn't utilize IV percentile in my stock watchlist as those can easily be studied in the Options chain window.
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My primary investment strategy is long term high yield dividend investing. I have been an actively trading the stock market for over 20 years and have built most of my wealth by reinvesting my dividends and following my 14 Personal Rules of investing. I actively trade options on both the American and Canadian Stock exchanges using options strategies and buying and holding high yield dividend paying stocks.
I generate monthly income in two ways. Averaging more than an annual 7% return by collecting dividends on high yield dividend stocks that I hold. The second income stream comes from the selling of option premium and taking advantage of theta decay. This neutral strategy allows me to make money in both bull and bear markets and limits my risk. Both of these strategies are suitable for passive income and create a stable predictable safe passive monthly income.
Want to learn how to trade stocks and make more money? This channel is dedicated to increasing investment returns and building wealth by passively trading in the stock market. If you’re tired of poor performance then make sure you subscribe to Drawbridge Finance ruclips.net/user/Drawbridgef... I produce weekly videos for the beginner trader and use simple explanations to learn how to buy and sell stocks for profit.
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Levi Woods
Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. I receive a small commission from the purchase of any item from using the links listed above. There are financial risks involved in taking on any monetary transaction that I discuss in my videos.
#interactivebrokers #stockmarket #options
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Great video. What platform do you actually use to trade and why?
I use interactive brokers because it is the lowest fees for Canadians. TD Direct investing would be my second choice. Here is a referral link to IB if you're interested in signing up: ndcdyn.interactivebrokers.com/Universal/servlet/OpenAccount.IBrokerGuestLogin?partnerID=U3041614&invitedBy=leviw654&ib_entity=ca
Finally a great step by step video!
Awesome job!
Thanks Dustin!
great video. A bit wired thing of my option chain window is that strategy builder takes more space when closed than opened. (when closed, the bar goes up). I also did not find how to remove it entiredly from the option chain. Any idea?
Thanks for this tutorial. Was really helpful for me
Great Video can i ask in TWS can i have multiple screens like an Options screen and a General Regular Trading Screen ?? thanks for all you do its amazingly helpful
Found your video and it really helps! Thank you
So glad!
Hi, thank you for the video. do you have a video, on how you can setup TP and SL in percentage in options trade for 4 legs?
Nice video! In regard to reports, how do you keep track of the premiums? Did you find a good report template in IBKR?
I love your videos. It very informative!
00:38 video start
anyway of having a dynamic trailing midpoint price for combos? l frequently set orders on combos based on conditional orders being satisfied, eg if SPY > 340, close a combo. l want to get the mid price. snap to mid , is not dynamic, it will take the mid price when condition met but stationary as the combo price moves away
Could you tell me if its possible, to place straddles, iron condors ect with hot keys, with a predefined Strike price, for example 1$ ITM/OTM, and predefined Profit size, universal for every underlying?
This platform feels very heavy especially for a beginner like myself. You do explain the features very well . Thank you for your insight.
It can be complicated at first.
How did you turn out? You get the hang of it?
I am new to the brokerage as well.
@@RichHxmie if you already traded before and just recently changed to IB, it will take ~ 1/2 months to get the hang of the interface/functions. If this is your first broker though, would recommend 6 months paper trading to get to know it first
@@RichHxmie its been 8months , how's it going?
@@rocky007w easy after a few months, easy to make stock purchaes and you can read the options easy too
Thank you kindly!
Thank you for this video. Can I trade options vertical spreads with $1800 initial account in Interactive Broker? Thanks a lot
Looks like there are two versions of the option chain. One is the option chain and the other is the option trader or something similar. The option chain doesn’t have the Statistics tab at the top, which lists IVR and IV%. Do you know if you can add that bar to the option chain as well?
you are the man I was looking for. thanks for the video. I found IB extremely confusing. this is will be very helpful for a starter like me. thanks again :)
Glad to hear it!
What market data options are best to sign up for with IB for options?
How did you add the SPX Index? Won't show in my search!
hi, do you know i it is possible to set a stop loss on options based on underlying in Interactive brokers?
Thank you Levi
thanks for the video, ı am trying to find and add Prob OTM% value but there is no such thing at configuration.
just liked and subscribed, thanks for your little tutorial.
Awesome, thank you!
@@DrawbridgeFinance I'm honestly thinking of joining your options traders club, while I still learn about option trading.
Thanks for the video. I don't have 52 week IV rank under options. The very first thing that appears after I expand the list is "Call/ Put Interest". Is there something you had to pay to get that?
On interactive brokers it should be free.
Great Vid-torial... Cheers!
Glad it was helpful!
Thanks!
hi. liked the video.. but i got the sense there was to be a second one...?
thank you to sharing.
please continue these
Great video, Thank you ! Is there a away to add probability OTM?
In the options chain? There are so many ways to customize the layout. Probability OTM is the inverse of delta so I normally just look at that number as it keeps my screen cleaner. A delta of 0.16 has a probability of 84% Does that make sense?
Drawbridge Finance yes I see what you mean. Thanks a lot for the prompt reply. Much appreciated
Maybe,if you ever have a few spare minutes you could do a short 5 min. or so vid on how to enter and/or close out a simple options spread trade on TWS, it's probably super easy (for someone that knows how) and there's probably a dozen different ways of doing it,(which may be part of the problem, they seem to include everything but the kitchen sink), but it's frustrating as all heck for someone who doesn't.Thanks and Happy New Year.
Thanks !!
Amazing video, i have a couple of question do you trade with the mobile app also? And can someone strictly use the mobile app or is there too much limitation? Thank you and keep up the good work
Many traders use the mobile app. I prefer the desktop but use mobile with limited restrictions.
@@DrawbridgeFinance ok thank you
Seems like IB paper only fills options on bid & ask. This makes it really hard to get real practice. Any one know away around this? Is there a way to get it to fill close to mid?
I wish we could change that. Keeping a manual trading ledger can help with this issue.
Does anyone knows how I can screen for option spreads on TWS scanner? My purpose is to narrow down the list to Spreads of $0.05 but so far I have no luck adding this filter on my screener.
How do you add in the money probability?
hi Levi, thanks a lt for amazing and quite helpfull tutrorial.
which monitor size and aspect ration do you use? thanks :)
This can be done on a 4k monitor. Mine is 42” but is pretty overkill.
@DrawbridgeFinance thanks a lot for reply 🙂
Nice tutorial! Just recently got TWS and got a question on an issue: at 3:41, you see at the bottom right that the news has a "rank" (sentiment rank correct?) It's not displaying a rank number, even though I have "sentiment rank" checkmarked in settings. Is it maybe part of a subscription that I don't have?... It just seems odd that it shows "rank", but nothing underneath it. Any help is appreciated!
You can phone IBKR and ask. I’m not sure what parts show with or without market data.
@@DrawbridgeFinance got it, thanks.
How can I trade currencies options like eur usd on platform .... How to setup a high/low buttons and chart on platform
are your OTM options yellow because of delayed data? because I'm trying to find a setting to change that color and I can't..
I usually only sell put. Is it possible to set up option chains window to show only the put side and mostly out-of money put?
I’ve never tried. I love adding calls to create strangles.
So I am interested in vertical spreads and by watching your video it appears that this is possible? Thanks
Yes, absolutely
Great configuration video. Just have one suggestion for option chain. Set the decimal placed of delta and theta to 2.
Agreed
what size font do you use? when I try to mimic this layout it just doesn't fit on my screen :/
I have a 28” 4K monitor. That likely makes a difference.
@@DrawbridgeFinance i have a 32'' tv but as well I can't fit the option chain window
i've reduces the font size to 9 and it look ok now
Thanks for the tutorial. I noticed your mouse pointer lags. If you record with OBS it can help with that.
can you do a tutorial on how to roll an option? thanks
for 0DTE SPX trades, do you recommend IB or TOS?
Both work well.
Do you know if you can write naked put option in an RRSP? I know you can definitely write them if you have the cash. I was hoping I could write options and put the premiums directly into mutual funds each time, but I don't want to have to sit on 5 figures cash to do so. If not, ill just open an interactive brokers taxable account I suppose.
You can't sell naked puts in a registered account
Mathew Scott Thought that was probably the case. Wanted to make sure. Thanks for the info.
Do you ever roll options? Is there any trick to keep track of the true cost basis of the position? IBKR doesn't look smart enough (nor can be told, it seems) to understand that this is the same "logical" position which aggregates various outflows or inflows over time. :-/
I roll all the time. I track total credits (and almost never debits) on options only trades from the original entry to the exit. Stock positions like covered calls still get tracked but are a lot less important than option only positions as there is always the average share price to fall back on. Check out my free ‘drawbridge50k’ posts on Patreon to see an example of tracking the transactions. 💰 Join the investing club today: www.patreon.com/drawbridgefinance
What is minium IBKR req for buying simple CALL option?
There is no margin requirement for buying calls. They just cost money to purchase which reduces the overall buying power in a portfolio.
I've set up an account solely for options trading with IBR, but I don't have permissions yet to trade options. How do I get those permissions?
i followed this whole layout and set it up but i accidently deleted trade and activity windows which were grouped together. i know how to re create the window but im trying to insert it by dragging it into the order entry window as i like the setup that way but i cant figure out how to group windows. thanks so much for your help
The top right corner of the window had a little Coloured chain icon. Grouped windows have the same colour.
@@DrawbridgeFinance thank you! sorry one last question on setup etc... i cant seem to simply zoom in and out candle view charts. its way too fast and zooms auto and i have looked up videos but cant seem to find how to remove the auto setting and just zoom manually and with the magnifying toolbar buttons. thanks again!
@@JP-rg1jh use the keyboard up and down arrows.
HI Mr Woods, which is the cheapest & best options trading broker in Australia for retail investor ? Anyone please suggest me the right brokerage firm for options trading. I will be taking day trade atleast 3 to 4 positions. Pls advise
thanks
You’re welcome. 💰 Join the club for trade alerts and private chat: www.patreon.com/drawbridgefinance
Hi Can i use IBKR in the UK? And what is the minimum deposit requirement?
Yes. Interactive brokers is available in the UK. Check their website to see the account minimums. www.interactivebrokers.com/mkt/?src=drawbridgefinance&url=%2Fen%2Findex.php%3Ff%3D1338
I currently trade options in a couple of margin accounts at Questrade but am not happy with their option fees. IMO nearly $22 cad roundtrip to open and close 1 contract... Is IBKR a much better choice as I am thinking of porting over later this year or for next. .. I generally like to stick to small contract sizes but for some holdings I am willing to scale up to 50-100 contracts for lower priced underlyings I hold.
IB $1.30 fees for the same trade.
@@DrawbridgeFinance - Wow that is a huge difference. Correct me if I am wrong but their fees for buying stocks and ETFs is not the cheapest. With QT it's $4.95 min and max 9.95 for stocks while buying ETFs are essentially free.
May I ask you a question please, do I need to have USD in interactive brokers margin account to trade options in US listed stocks. Because I have CAD. Should I exchange currency to USD? In Questrade it seems ok to trade US options with CAD. I moved to Interactive brokers for low commission. Thank you. Your contents are awesome. Can't imagine it's free and very valuable.
all margin is calculated off CAD so the only time I need USD is to buy to close options or to buy stock. It’s easy to convert between CAD and USD.
How is your so far experience with interactive brokers for options? Coz I’m thinking to move out of Questrade coz of hefty commission charges for options trading
@@rikinpatel7995 I still have both questrade and interactive. Still with questrade because of my registered account TFSA and RRSP. In ibkr maintenance fees. But there is a margin buying power for the TFSA money. Sometimes occasionally I do options for that free money and let the options expire worthless to cut commission. Ibkr is very good for commission for both options and regular stock purchase. First the user experience will be tough but anyone can get used to it. From July 1 the account activity fees they are waiving in ibkr. And the minimum balance requirements too. I got a mail from ibkr which is very good. In short ibkr won't disappoint you. Please try paper trading account if you want to try options. For commission interactive is way better.. try it
How to view 'portfolio delta' of whole portfolio
I wish I knew. Theta or Vega are the only portfolio Greeks that seem to be available. Let me know if you find out how.
seems since this video, TWS gone through some changes and Greeks are no longer available as well as many other features. Some features like Margin and Standard Deviation, etc are still showing up but no matter they are checked or not, they won't make any difference on the chart setting?????
I still have the Greeks.
@@DrawbridgeFinance I have been using TWS for over 5 years and I can say I am comfortable with working with it. However, having no luck to make it work and unfortunately their customer services are hard to reach and when I do, they are asking to creat a ticket which seems to be simply ignored. Overall a great portal which has some glitches. I can send you some screenshots if you like to explore. Thank you
How much do you need in the account to be able to trade options please?
It’s probably not worth the time requirement to trading in an account smaller than $25k.
IBKR doesn't let me trade options. I am over 21, with one year of experience and a good knowledge. (Annual Net Income
how fast is the platform for active traders. thx!
it's not as fast as I would like. I'm an options trader and am typically in my positions for 3 weeks so it don't need the speed but it would still be nice if it was faster.
So much space... this makes me want to have a 4k screen too
1080 gang here, I cant fit what he has on his screen :(
Dear Drawbridge: At 2:21 minutes: Your fairy *tail* voice is the perfect speed and clarity -- but not with that pitch, though. Slow down and speak clearly. Don't rush.
Aren't you also looking at open interest when you trade options?
Yes!
Good stuff, I use etrade and I like that platform.
What about "Interactive Brokers Arbitration Agreement "...
What are you doing right now since option premiums went down?
And is Interactive Brokers free to use?
Interactive brokers is a very inexpensive platform. Option premiums are very high right now and will be a long as the VIX is high. I have not been making a lot of trades this past month but expect that we will be putting on lots of winning trades in the months to come.
I started trading options on IBKR in January and its been great, a little slow the last month but hoping to dive back in soon
@@DrawbridgeFinance hey man is there a free options simulator like the stock market simulator?
@@mathewscott7487 Isn't there a 10,000$ fee if you don't trade enough? 🤔
@@leonardwalsch7128 I've heard about a 10k min account size
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I was on TOS and found it to be a little too expensive
TOS is very expensive in Canada
The most important piece of information in this video @2:22 jk
i hope he bought calls
No buying calls here. Unless to protect my short calls. 💰 Join the investing club today: www.patreon.com/drawbridgefinance
I find this platform not easy to understand. Need a lots of configuration.
It is a steep learning curve. 💰 Join the club for trade alerts and private chat: www.patreon.com/drawbridgefinance
Free educational investment videos:
ruclips.net/user/drawbridgefinance
@@DrawbridgeFinance so, how much can you get paid if you got git
@@DrawbridgeFinance I meant got hit? And who has won against the Chinese government in court?
6-core i7, 16GB 2020 Macbook pro and still this application keeps crashing what a joke
this is impossible, i don't have a 50 inch monitor
This setup works on a 26” 4k monitor pretty easily. On smaller monitors the option chain window can be made smaller to make room for everything else. To expand the windows in IBKR just click the “+” in the top left corner. Clicking it again will make the window smaller.
You must have 100k at least to trade Options on IB
That is incorrect. I recently opened a small test account trading options with IB with only 10k CAD and traded options no problem with that.
@@DrawbridgeFinance can you sell option (naked calls and puts) with this 10k account? with out any problem? thanks
Dharmesh Parekh 10k is enough to trade options for sure. Not a huge amount of contracts but enough to get a taste as the account size grows and makes it more worthwhile.
oh jizzz I cannot wait to get tastytrades in Canada ... these all software is junk
Caveman, you did not have the courtesy to answer my question or react at all. Undeserving. I unsubscribe.