How To Place Options Orders in the Thinkorswim Platform

In a series of recent blog posts we talked about how we like to use credit spreads with our options trading at NetPicks. We talked about selling call credit spreads, put credit spreads, and iron condors.

These trade types gives us tremendous flexibility in many types of market conditions which is crucial in today’s news driven markets.

While we believe all options traders should have vertical spreads as part of their options toolbox, many traders shy away from using them solely due to not understanding how to place the orders in their broker platform.

Since we are trading multiple options as part of these trades, it can be intimidating when using these trade types for the first time.

To address these concerns we have put together a video that shows you how to place and manage credit spread orders inside of the Thinkorswim platform. We are using this platform since it is one of the most popular platforms in the industry with options traders.

We will follow this up over the next few days with a video that covers how to place these orders in the TastyWorks platform as well. You can certainly use these order types in any broker platform, we choose to cover Thinkorswim and TastyWorks since they are the two most popular brokers for options traders.

Take a look at the video below and let us know if you have any questions. Mike@netpicks.com.



4 Comments

  • Paul L Dalbec

    I will digest what you have offered and in retrospect make comment.

  • Arthur Napoles

    Excellent video and worthwhile review since I’ve been using the TOS platform and credit spreads and iron condors. I was hoping to hear about creating stop loss orders because I’ve had lots of problems in the TOS platform that it has closed out a trade way out of the price that I specified. I have not had a reasonable reply from the folks at TOS other than it’s a system quirk. I have since stopped trading spreads and condors in my account until I figure a solution. Have you had similar problems or do you handle stop loss orders on credit spreads and iron condors differently?

    • CoachMike

      Arthur I don’t use working stop orders. When bid/ask spreads widen out at the open and close of the session it can cause orders to be triggered by wide markets. I use price alerts instead to notify me when an option/spread hits a specific level. Once I get that alert on my mobile device or computer I go in and manually take the trade off. It allows me to get better fills on the trades.

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