It is worth acquiring strangle if there is a movement in the rate of the target asset.Īs a rule, strangle is built for subsequent speculative sale at a higher price. Strangle differs from straddle only in that expiration prices vary. In case of breaking it is better to get a straddle. Sell straddle is worth it if you are sure that the rate will not break the conditional price channel. The optional strategy of straddle involves the simultaneous purchase of the PUT (right to sell) and CALL (right to buy) options with the same strike time and strike price. Keep in mind that when we form a spread, TOS considers not at “bid” and “ask”, but at an average price. The cost of the entire spread is indicated in DEBIT. Immediately, TOS forms a spread below, highlighted in green. To create a spread, similarly – click buy (CALL) and hold Ctrl / Cmd to select another option and sell it. Note that on the left side of the screen are CALL, and on the right PUT. Upon purchase, it is automatically highlighted in green.
#HOW TO BUY OPTIONS ON THINKORSWIM HOW TO#
We will figure out how to acquire options. The Option Chain column indicates the expiration date of the option. The longest options can last several years. not for all stocks, but only for the most liquid ones. They are not present on all contracts, i.e.
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The number of days until completion is shown in parentheses, and if 0 is indicated, then today is another whole day. Enter a ticker at the top, select the type of displayed data “Layout” that you need (at your discretion, as you wish). “Add Simulated Trades” is used to search for optional chains. The Analyze tab consists of two sections. We will deal with the necessary tools for working with options in TOS.
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TOS is great for trading options and option spreads (several option combinations, both bought and sold options).