Skip to main content

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 :

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

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

  2. Choose OCO





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


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

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


  1. Verify everything is fine. Confirm and SEND.

  1. 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.



Labels:

Comments

Post a Comment

Popular posts from this blog

Sell Put Spread Strategy on SPY To Generate Monthly Income

  I was introduced into the world of Options Trading when I joined a Value Investing Course by a stock investing guru named  Sean Seah . One was the strategies I learned from this course is called VIOS (Value Investing Option Strategy). This strategy aims to consistently make money by selling naked put options to collect premiums on fundamentally good stocks with minimal risk (worst case scenario you are forced to buy that stock if your option is exercised). Anyway I won't be talking too much about the Fundamentals of Options as you can find many free videos of these on YouTube and paid courses on Udemy. I have been selling mostly naked put options to collect premium for 4 years using the ThinkOrSwim platform and I was collecting good premiums making some small profit. One strategy I used was to keep rolling my option if it went In-The-Money (ITM) on expiration day . However I discovered that  there is a huge risk involved with this Naked Selling Option Strategy even when...
Post a Comment
Read more

Trading Journey [ Part 2 ] - Consistent Set of Actions

The month of March2021 had been a rather rough month for me. I lost 100% in my Sell Put strategy for SPY due to the crazy volatility caused by the 10 year yield scare. I have since adjusted my Stop Loss to be triggered at 250% instead to avoid being stopped out from price volatility. I closed my PEPSI sell put option by manual cut loss 21 days before  expiration which ended up bring profitable if I didn't cut early...another reason to stick with the original game plan instead of tweaking my exit plan halfway after entering the trade. I just realized 100% losses from my bull put strategy on APPLE and JNJ.   The losses was a bit hard to take and do I decided to take more risks by not sticking with my game plan for my overall trading strategy and added more options trades which did not follow my rules and went beyond my trading size. Once such trade is I did a SELL Iron Condor on Facebook when it was trading at $260. I looked at the chart and saw it was in middle a strong Re...
Post a Comment
Read more

The TOP 3 DOs and DONTs To Be a Successful Investor

Many times we ask ourselves "Why do some people make money easily while I have a difficult time doing so?". I already have a few friends who are making tons of money after huge investment in crypto and I have another friend who has made tons of money in options trading. I am still struggling and I have been asking myself why. What am I lacking compared to them? I believe it is the amount of effort and time that my friends have placed to master the art of trading and investing -that make them successful. They will only focus on one thing and continue to sharpen that skills and knowledge relevant to that instead of jumping from one to another. For my case I have dabbled in the futures market, day trading, options, some crypto....all with mild or no success.  It is time for a change.  I have to put in more effort to be a more of a successful investor. knowledge without action is meaningless. We must Do the right things and DONT Do some things that may hinder our progress to be s...
Post a Comment
Read more