How To Place an Option Strategy Order from a WatchList

An order ticket for any option strategy can be generated from any Symbol in a WatchList. These steps demonstrate how to place the order which uses the standard order ticket. The steps will work with any of the Options Strategies.

1. Right-click on the symbol in the WatchList for which an order will be placed

Select Trade Option Strategy from the drop down menu

2. Select Desired Option Strategy from the Menu

For this example, the Long Call Spread is used

This opens a standard order ticket with the fields pre-filled based on the user-defined default option buy ticket

The order ticket contains:

  1. Contract details for both options (action, date, option type, strike price, premium)
  2. Expiration dates (dropdown and grid)
  3. Order type
  4. Order price (net premium)
  5. Spread (natural-far)
  6. Quantity
  7. Duration
  8. Cost of trade

If no changes are desired, simply click Buy to Open {Sym} Call Spread 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

Use the spinners next to the option leg(s) to move up or down through available strike prices for the selected expiration date.

5. Select the order type desired for the contracts

Either leave the order set on Limit, or select a different order type from the drop down menu.

Using a Market order will allow the order to get filled but will remove any entry price control.

6. Set a Limit Price (optional)

The Limit slider shows the spread between the natural (in this case, the ask) and the far (in this case, the bid). To set a price (net premium) within the spread at which to place your order, click at any point on the slider. The limit value is seen in the price field next to the "Lmt" order type.

7. Use a Step to Limit order (optional)

Another way to take advantage of the spread is the Step to Limit order. Choose the Step to Limit order from the drop down menu. (A Step to Market order acts the same as a Step to Limit order except that if no preferable fill is achieved during the step period, the order then moves to the Market price.)

Set the beginning of the slider at the limit price desired for the initial order. This will be the limit price at which the order will be entered.

Over the predetermined time period the limit price (net premium) will be automatically modified up from the initial entry price toward the Natural (or selected) price. The step to limit order will attempt to secure a preferable fill price in this process. Modification stops if no preferable fill is received and the limit price reaches the Natural.

8. Set the quantity

Select the number of contracts for the order. (Note: remember a single option contract normally controls 100 shares of stock.)

9. Submit the order

Click Buy to Open {Sym} Call Spread

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).