How To Buy A Put From the Chart of Underlying (Market Order)
Buying a put affords the buyer the option (but not the obligation) to sell 100 shares of the stock at the selected strike price. This option extends from the purchase date to the selected expiration date. Below are the steps to place a market order from the chart to buy a put option.
1. Click the Opt (options) button at the bottom of the price pane to open the Option Strategies menu
2. Select Long Put from the Menu
Alternately, click the Buy button and choose Buy to Open Put from the drop down menu
This places the On-Chart Order Ticket at the left of the chart with the fields pre-filled based on the user-defined default option buy ticket.
The order ticket contains:
- Contract details (action, date, option type, strike price, premium)
- Expiration dates (dropdown and grid)
- Order type
- OCA button
- Cost of trade
If Market order appears as the order type and no changes are desired, simply click Buy to Open Put and confirm to place the order.
3. Select Expiration Date
Change the expiration date either to closer or further dates using the arrows
Alternately, select a specific expiration date from the drop down menu
4. View available strike prices with the strike price line
Click and drag the strike price line between the available strike prices for the selected expiration date. These are represented by the hash marks at the left of the P&L Zones. Simply stop at the desired strike for the contract.
5. Select the order type desired for the contract
If Market order is not showing in the order type field, select it from the drop down menu.
6. Use a Step to Market order (optional)
Another way to take advantage of the spread is the Step to Market order. Choose the Step to Market order from the drop down menu.
Set the beginning of the slider at the initial price desired for the order. This will be the price at which the order will be entered.
Over the predetermined time period the price offered will be automatically modified up from the initial entry price toward the Market price. The step order will attempt to secure a preferable fill price in this process. Modification stops if no preferable fill is received and the price then moves to the Market.
7. Set the quantity
Select the number of contracts for the order. (Note: remember a single option contract normally controls 100 shares of stock.)
8. Set the duration (time-in-force) for the order
9. Submit the order
Click Buy to open Put
Click Place Order to confirm and submit
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).