How to Set OCO (One-Cancels-the-Other Order) in ThinkOrSwim

I posted an article about collecting premiums using the Sell Put Spread Strategy on SPY. Click here to learn more about that strategy.

The Strategy will require me to create 2 separate orders after the entering the trade. The first Order is a Stop Limit Order to take profit (75%) and another order to Cut Loss (-150%).

Profit Target : 75%

Stop Loss : -150%

One way to place the 2 orders above is to create an Advanced Order called OCO (One-Cancels-the-Other Order). So if any one of the 2 Orders gets triggered, it will Cancel the other Order.

Here is a guide how to create an OCO order in ThinkOrSwim for the above Put Spread Strategy :

After your order is filled, go ahead and create a normal Closing Order for your vertical spread

You will see a Close Limit Order such as this. Click on Advanced Order
Choose OCO

With OCO picked, Right click on the first Stop Limit order → Create duplicate order.

You will see the second Order here (a duplicate of the first order)

Make changes to the second Order. Change the Order to STOP and modify the other values as well (Stop Price, GTC,etc)

Verify everything is fine. Confirm and SEND.

Now check the Working Order. You will see the orders you placed. To know if it is an OCO Working order -- you will see a chain symbol linking both orders. If any of these get triggered, it will cancel the other order.

UPDATE - 2 March 2021

Once of my favorite youtube channels on options trading - OptionsPlay just posted a video on how to set OCO orders (I am not affiliated with them). Do check it out....it is exactly the same as the guide i posted above.

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