Understanding The Option Strategy Menu

The Option Strategy menu presents both a graphical display of the options strategies offered and serves as the launching pad from which those strategies are placed on the chart for trading. This menu offers a picture of where the potential gains or losses are with each strategy. Below is a brief and basic introduction to the strategies and a few steps to implementing them on the charts. Links for further study are provided for each strategy.

There are three basic categories of options strategies presented:

  1. Bullish--strategies that are potentially profitable if the stock goes up.
  2. Bearish--strategies that are potentially profitable if the stock goes down.
  3. Volatility--strategies that are potentially profitable if the stock goes up, down or sideways.
    • High Volatility: potential profit if the stock moves significantly in either direction
    • Low Volatility: potential profit if the stock does not move significantly in either direction

Click the Opt (Option) button at the bottom of the price pane to open the Option Strategy window

Always remember that each stock option contract normally controls 100 shares of the underlying stock.

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. Click Here for more.