TC2000 Help SiteTrading Stocks & Options Trading OptionsHow to Place Conditional Orders on Options

How to Place Conditional Orders on Options

Using conditional orders, you can place an order for a single option which is triggered by a condition met by the option itself. (Note: conditional orders can only be used on single options, not multi-legged options strategies.) Here are the steps for triggering an option order based on a condition or condition set.

1. Open the Option Order Ticket

Click the option button at the bottom of the chart price pane.

Select Long Call

Note: Conditional orders can also be set on Short Put, Long Put and Short Call orders.

This places an on-chart order ticket for a long call on the chart.

2. Set the Option Order parameters

Using the drop down menu select the desired Expiration date

Alternately, use the blue arrows to move through the grid of available Expiration dates.

Using the Trade Slider, click and drag the Strike Price line to the desired strike price for the chosen Expiration date. Strike prices are represented by the hash marks near the green and red chart P& L zones.

3. Create New Condition for the Order

Click the Condition icon (blue funnel) to open the condition menu

Click Add Condition

Select Add Option Contract Condition

In the Search field type the name of the condition(s) to be used for the Order.

If you don't know the name of the criteria you can use the Categories to narrow the list and scroll to find the desired criteria desired.

Click the criteria to be used for the condition.

Note: In this example we will build a Condition set looking for this option to have Options Delta above .50 and Open Interest above 100. However, any indicators, fundamentals, formula, etc., in the condition criteria library can be used for constructing a condition/condition set. For more on creating conditions, click here.

Click the Condition dropdown and select Greater Than from the list.

Set the desire value (e.g. above .50) and click OK.

Set the desired Minimum and Maximum values and click OK.

Click Add Condition to create a second condition. You can use multiple conditions (a Condition Set) to trigger an order.

Select Add Option Contract Condition to build the condition based on the option itself.

While this example is creating conditions only on the option, you can mix conditions based on the underlying, the actual option itself and even using a different symbol all together.

In the Search field type the name of the condition(s) to be used for the Order.

If you don't know the name of the criteria you can use the Categories to narrow the list and scroll to find the desired criteria desired.

Click the criteria to be used for the condition.

Set the greater than value to 100

Click OK to add the second condition.

Note: when creating individual conditions, click the Save button to name and add them in the condition library for re-use.

4. Apply the Condition to Trigger the Option Order

Click OK to Add the conditions to the order ticket.

The conditional order icon (blue funnel) will now show a number next to it (in this example, 2). This is the number of conditions involved in the conditional order.

5. Place the Option Order

Click Buy to Open Call and then Place Order on the confirmation screen when it appears.

The order now appears on your chart. The conditions are noted by the condition icon (blue funnel) with the number of conditions next to it. Only when the conditions are met--the option delta is above .50 and the open interest is at least 100--will the order be placed.

You can edit the conditions in the live order by clicking on the condition icon (blue funnel) and then selecting/changing the individual conditions.

Submitting any edited conditions will create a modify order ticket and will actually modify the existing order based on the new condition parameters.

6. Alternative: Use Saved Condition from the Condition Library (Replacement in Step 3)

As an alternative to creating a new condition or condition set to use in the order, use a saved condition from the library. Click the Condition icon dropdown arrow (next to blue funnel) to open the condition menu

In the Search field type the name of an existing Condition or Condition Set to be used for the Order.

Select the existing Condition/Condition Set to be used.

This will apply the Condition/Condition Set to the Order ticket.

Follow step 5 to place the order.

The trading tools work on either a LIVE brokerage account or a PAPER (simulated) trading account. Live market trading requires an account with TC2000 Brokerage (www.TC2000Brokerage.com).

Disclaimer: Please note, because of the unique nature and many details in a conditional order, whenever you use any conditional order you will be prompted with the disclaimer explanation seen here. It is important to read and understand the implications of using conditional orders.