Options Trading: THINKORSWIM TUTORIAL | Scott Reese | Skillshare

Options Trading: THINKORSWIM TUTORIAL

Scott Reese, Engineer & Investor

Options Trading: THINKORSWIM TUTORIAL

Scott Reese, Engineer & Investor

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9 Lessons (1h 32m)
    • 1. Introduction

      1:29
    • 2. Placing Orders

      22:29
    • 3. Setting Alerts

      11:54
    • 4. Position Groups

      9:37
    • 5. Beta Weighting

      17:03
    • 6. Watch List

      7:54
    • 7. Charts & Indicators

      12:39
    • 8. Stock Scanner

      7:55
    • 9. Wrapping Up

      1:04
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About This Class

All successful traders need a reliable and capable trading platform to make their trades, analyze charts, and manage their risk. While there are countless options available, the ThinkOrSwim platform is definitely one of the best out there. In this course, you will learn the basics of ThinkOrSwim which are all you need to be set up for success! 

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Scott Reese

Engineer & Investor

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Transcripts

1. Introduction: Hey there. So as somebody with an interest in trading, one of most important tools that all successful traders need is a very capable and very reliable trading platform on which to conduct all the trades. Right now, there are plenty of options out there, and I myself haven't used them all. But in my experience, and in my opinion, the Thinker Sun Platform is one of the best out there. So if you are just getting involved in the trading world, or maybe you're looking for a better platform to switch over to and this is a great course for you because obviously this is a tutorial on how to use The Thinker. Some platform. Now, I'm not gonna go into all the different features and nuances of this platform one, because this course of probably over 10 hours long, if I did, and two, because I myself haven't used every different aspect or feature of this platform. So this course didn't cover the basics of thinker swim. And in my view, that's really all you need to be successful. In fact, for my style trading, I don't use any part of this platform that is outside the scope of what's taught in this course Now this is the first course of mine that you've come across. My name is Scott Reese. I'm currently a softer engineer in the financial services industry and most one options trader. So my style of trading is all about selling options when implied, volatilities high and also giving myself high probabilities of success on every trade. And so as a result, this course is skewed a bit towards options trading. But if you don't trade options, maybe you prefer to trade stock or futures for ex whatever. It doesn't matter. You can trade any financial park that you want on The Thinker. Some platform and everything tautness course can be applied towards whichever product you like to trade the most. So that being said, let's get started. 2. Placing Orders: All right. Welcome to the first video this Think of swim tutorial. And in this 1st 1 here, we're gonna be starting things off with something pretty simple. Just could be showing you how to place orders. And that's in regards to placing orders to open your trades, to close your trades. Also, give me showing you a bit about the different order types. That thing Grissom allows you to make if you want to get a little more fancy and things like that. So what you're seeing here is kind of my home page, if you will for the think of some platform, um, explain much more of what's going on here later in this course, but no one they could trade you first. Want to go to the trade tab up top here, Click on that. And I have what is set up here. The option change for Apple stock. So if you want to come in and buy or sell options on Apple, the first thing you want to do obviously is pick which expiration cycle you want to be in. Um, my recommendation is, if you are selling options, you should be selling options with at least 30 days to go till expiration and that most I'd say around 60 days to consider. With these June contract expiring 31 days. Is July contracts expiring? In 59? We have two options here that we can choose from. If you are buying options, that that's what your intention is, since the time decay component of option pricing is gonna be working against you as opposed to for you. If you are selling options, then my recommendation is to give yourself more time. So going at least 60 days from expiration is what I advise. If you go further than that, maybe 70 80 or 90. That's probably the best case scenario. So since my strategy is all about selling options, I would be looking at either the June or July contracts, and I probably start trading the July's since, with more time baked in, these options are going to be worth more. So you know what you're seeing here before I kind of get into of how the place orders on the left hand side. This big column is all of the call options on the right hand side, all the put options and you could see down here in this column needs all the different strike prices. And up here you can see Apple stock. You could see the current trading price of Apple stock, which is $313.14. All the options in blue for both the calls and the puts. These are there in blue because they're currently in the money, right? So if you, for example, with this call option with a strike of 3 10 Since the strike price is currently below the current trading price of Apple, it's obviously in the money. And likewise for this put with a 3 15 strike. Since the strike price is currently above where Apple is trading, then this put options obviously in the money. And likewise, so are all these other options with higher strikes and for the calls are all these calls with lower strikes. Now, when it comes to placing orders, there's a couple of different ways you can do it. So if you just wanted to be very simple and just buy a call option or sell a call option or put or whatever it is, she's a single option. You want to buy or sell you can see on these these two smaller columns here, the bid and the ask, you can just click on one of those numbers to set up in order. So, for example, if I wanted to sell this 3 45 strike call option, I could just simply click on the bid, and we'll automatically set up this, uh, this order for me saying that I want to, you know, sell a single call option, right? Just one apple stock, obviously 17th of July is expiration date 3 45 strike. It's obviously a coal, and you can see over here is the price at which I'd be looking to sell this option for now . My default Think or some will set up a limit order for you. And this is why I recommend you trade with power to click on this. You can see there's a bunch of different other kinds of order types, but really, in my opinion, all you need is a limit order. And the reason why I encourage you to use thes kinds of order types is because it gives you the greatest amount of control over the actual price. I wish your order gets filled that. So, um you know, just in case you're not familiar with a limit order and allows you to specify the price, right? And I can obviously toggle up or down the price at which I want to basically sell this call option for And, you know, I can use the bid and the ask to kind of get an idea of where I want to sell this option for in terms of the price. Um, you know, I could so right at the at the bid most likely get filled instantly, but a seller I want to sell for the highest price possible, so I might want to try selling at the asked to 91. But typically, I think it's it's fairly reasonable to assume you get filled pretty quickly if you sell at a price or bite a price in between the bid and the ask so directly in between 2 88 to 91 is to 89.5. You can't get that specific with the pricing, so I probably just keep it up to 90 and see if I could feel that price. But using the limit order means that, um, this border. This cops and I want to sell will not get filled. I will not be entered into this trade. If there's not a buyer out there willing to purchase this call option from me for at least $290 right? If there's a there's a viable into by that to 91 or 2 95 whatever, then great deal stole the order will still go through with the higher price. That's good for me. Um, but this limit ordered guarantees that I will not be entered into this trade for a price under 2 90 So you could, you know, use a market order, for example, which just says, you know, seller's option at whatever price that you can get me in at that doesn't give you any control over that price. So, um, that's why I recommend using a limit gives you absolute control over the pricing for your order. Now, this obviously is for selling options stuff, you know. Conversely, if I want to buy the option, I could that I could just then go in and now click on the ask instead of the bid, and that will automatically set up a buying order writes, and I'm going to purchased one call option again uses a limit order by default. I can specify the price. And as a buyer, I want to purchase the call option for the lowest price possible. So looking at the bid and the ask, you know, you know, they're so close. But, um, you know, probably come down to 2 89 Maybe I could get filled the 29 versus 2 90 to 91. We'll see what happens. But I basically just specified my price. Make sure it's a limit order and then confirmed sin and the order gets placed. Now, before moving on to more advanced order types, you'll notice. Over here there's this day box and this best box. So what is that one of these things mean? Well, a day This just means that this order is only going to be valid for just the current trading day. So once this order gets sent out, if you know in this case, I'm buying this option. If there's no seller out there willing to sell me this option for 2 89 um, or less than once the markets close this or is just to get canceled, it's gonna expire. And I'd have to come into my platform tomorrow and recreate the same order again, all over if I still had an interest in this position, right, So you can also specify it to a GTC order, which means good to cancel. And that means this order is just gonna be sitting out there indefinitely until I either get filled on the order or I come in and cancel it manually, and you obviously have these two options. My recommendation, though, is when you are opening a position. So, you know, in my case, I'd be looking to, uh, you know, sell this option. I would never want to use a GTC order for an opening trade. And that's just because using a day order just gives me a little bit more control over what happens here. It could be very easy to forget about orders that you have that are good to cancel. So they're just out there indefinitely. Um, you may forget about them and you get filled on a GTC order at, you know, a price point. That's really bad because markets obviously move stocks move very quickly. So having as much control over your types as possible is why was recommend So opening trades used a orders and then for closing trades, which I'll get into in a minute. I always recommend using GTC orders and you'll see why. Um, that's what day means. And then best. There's a couple different options here. This allows you to specify the exact exchange on wish your order could go through app. So, um, you know, if you had a reason that you only want to sell options on the New York Stock Exchange, you could just select N Y S e. And there you go. Um, I advise you to just keep it at best, though, which basically means it's going to your order's gonna go through on the best exchange available. So wherever there are buyers in this case that are available to purchase this option from me at whatever price I want, um, you know whether they're on the New York Stock Exchange or something else, Um, wherever they are, this order didn't go through on the best exchange. So recommends leaving it at best. So that's just your basic order type. Righteous buying or selling a single option But obviously there are different position types. There's credit spreads was Iron Condor strangle straddles and these, you know, order These position types involved buying and selling multiple contracts at the same time . So how would you said something like that? Well, as an example, if I wanted to sell a strangle on Apple, that means I'm going to be selling both a call and a put at the same time. So I still might want to sell this to 3 45 strike call. But now I also want to sell this to 65 strike put. So if I want to set this order up, I can just right click on either one of these. So right, click. And then I want to come down to sell. Come over here and you can see all the different kinds of more advanced order types, right? You can just again sell a single option, just like before. With that shortcut, you can also do vertical spreads, calendars, straddles, strangles, iron condors. On on on There's a bunch of different kinds of more advanced position types. You could make a single order. So, as I said, I'm gonna come in here and sell a strangle. So set that up. It's now you can see we have an order here that's involving two options at the same time. So selling one Apple call option Striker 3 45 and then also selling one Apple put option with a strike of to 65 have to specify that. And there you go. We'll be looking to take in about $637 in credit. It is a limit order again. So I do have control over the pricing at which this stronger gets filled that and again, just leaving it as a day, a day order and whatever exchange get filled on. I'm happy with that. So with more advanced orders involving multiple contracts, one thing to keep in mind is that you know this. Ah, this border as a single unit involving both these contracts, it's not going to get filled unless there are buyers for both the call and the put. I want to sell at the same time. So it's not like, you know, if there's only a buyer for this call option that you know that part of the orders are going to get filled and then I'm still waiting on my put option. That's not how works on Lee. If a buyer for both these options come in at the same time. Um, and we agree on this price. Only at that point is this entire order going to get filled and then I'll have my strangle on. And this is why I always advise you to trade stocks that are very liquid and very popular that are very heavily traded because, um, you know, stocks like apple that are so, you know, extremely heavily traded every day. It's gonna be very easy for you to come in and set up advanced orders that that involved, you know, 234 X amount of contracts at the same time. As long as you're pricing is fair. Based on what the market is telling you, it's gonna be very easy to get filled on all those contracts at the same time. Now, the next thing I want to touch on and touch on briefly is you could see down here advanced order and this allows you to specify aim or advanced order. Obviously that involves, you know, if you want to sell a strangle and then a call or an iron condor Kind of old the same time or in certain sequences or different orders. This is how you can basically create a very advanced order that consists of, you know, smaller orders. So we'll see what I mean. I mean by that, a second here. So, you know, I should have been set initially on single order. So that just means I just want whatever is in this, uh, this area right here. This strangle, that's what my entire order consists of. Once I make sure everything looks good here. I just had confirmed send and this one order for this one strangle get sent out if it gets filled. Great. And then it's a done deal. However, if I also had a desire to sell, strangle and also maybe just sell another naked call on Apple, I could do that. And maybe if I care about the order in which these or the sequence in which these orders get filled that or get sent out into the market, I can come down here and use these advanced order types to do that. So, um, so the first thing we'll show you here and I'm not gonna go into all these because, honestly, there they're not very useful. But the first thing we'll show you is this first triggers sequential order, and this allows you to specify the sequence of the various orders that you might have set up here. So right now, I just have the strangle set up. And if I also wanted to sell a naked call and apple with the same 3 45 strike, I could do that just by clicking on the bed again. And there you go. Now you can see we have both a strangle right here. We have a strangle set up and a single call option that we want to sell as well. And these are both limit orders. I can specify the prices. And this first trigger sequential order type means the first order that I have here this strangle that's gonna get sent out into the market first. And if that gets filled, that water gets filled and Onley when they when it gets filled at that point, then this Nick call that I want to sell at that point. Then this. Then that order will get sent out into the market and hopefully that gets filled as well. So if you know, for whatever reason, I only wanted to have a naked Colin Apple. If I also had a strangle on it first, then this would be a way I could ensure that. And you can specify as many different orders as you want here. So if I wanted to also sell a put and Twitter or something else, I can go and do that. And this first trigger sequential advanced border type means they're just gonna happen sequentially from top down. So first, my strangle order gets sent out for Apple. Once that gets filled, that my naked call for Apple will get sent out. If that gets filled, then my naked put that I want to sell on Twitter, Then that will get sent out. And hopefully that gets filled. So just one after another. After each one gets filled, I can also choose the first triggers all order type. Which means once my, um, my strangle on apple gets set out rights. The 1st 1 here that could send out once that gets filled than all of the remaining orders below, it will get sent out at the same time and hopefully they'll get filled. Or maybe some will somewhat. But only the 1st 1 gets sent out, and then the rest are waiting. And then once the 1st 1 gets filled, then all the rest gets sent out, and the next one I'll show you is the, um oh, CEO order. One cancels other. And this just means, you know, if you wanted to have, you know, two orders that you're kind of indifferent between. So you can see here with a strangle in the naked Cohen apple if I just wanted one, not both to be my position. Um, I could use a one cancels other order type, which means that both of these will get set out at the same time and whichever one gets filled first. Great. That'll be my position in Apple and the other one will just get canceled. So my strangled gets filled first that my naked call order will just get cancelled and I'll just have a naked or I'll just have a strangle in Apple. Conversely, if my apple naked call gets filled first, great, then my order for the struggle will get cancelled. I'll just have one or the other And obviously there's Like I said, there's a bunch mawr not gonna go into all of them. But my opinion of these is they're pretty useless. To be honest, I almost never used these advanced order types. I usually just keep it to a single order and just use a basic limit order type. Um, you know, I don't even use stops at all. Stop limits. I think these are all kind of, um you know, it more advanced intricacies that are really just a relevant for this style of option trading. But, you know, feel free to kind of experiment if you want. Although I will say the only time will ever used em or advanced order type is, you know, used the first trigger sequential Sometimes when I'm making adjustments to current positions. So, for example, if I go to GM here, um, I go to the June contracts, I have a strangle on in GM. And today, you know, GM had a pretty big rally, so it started testing my call strike here, and I initially sold this 15 strike put way down here back. You know, when jim was much lower and you know my adjustment was I bought that put option back consult a new one much closer toward the stock is trading. So I could take in some more credit. And, you know, that consists of two different orders, right? Buying back the 15 strike and then selling the new 21 strike. So in this case, I used a first trigger sequential order. So to buy this one back, you know, I could just click on the ask here, that sense of that buying order. Um, you can see here first trigger sequential. That's my order type. And then I came down here and I clicked on the bid for this one. And there you go. So it sets up, um, the the adjustment order, if you will, For how I want to adjust my jam position. I can obviously adjust my prices here, but basically, I want to buy back this 15 strike. Put first eso once that's that's filled. And I bought that option back then with this order type the, uh, the other order of selling the 21 strike put. Then now we'll get sent out and then that'll get filled. And then once both those olders are complete I have basically made my adjustment in GM. So, um yeah, as I said, that's the only kind of use case where I use a more advanced order type. But besides that, I really just keep it to the single order just for simplicity. And the last thing I want talk about here are closing orders, right? Eso if I go back to the monitor tab here, All these orders and green, these are all my good to cancer closing orders. So I like toe Have, um you know, when my positions get place when I open trades, I like to place closing orders that are good to cancels. They're just floating out there in definitely. Um, and they will close my position automatically once the pricing gets to where I want it to be, so I can take my profits. So, as example, going back to my gm strangle here, you can see my position and see and very small font. So might be kind of hard to read, but in red here in CPOs, that stands for a position on both sides. And with pos being in red, that means I am short these options. So with the strangle on GM. I obviously sold the 25 strike call and then sold the 21 strike put and then you can see next to it is this little green box that says by says by on both sides and that represents my current closing or that's in place that is going to buy back the 25 strike call in the 21 strike put at the price that I have specified. So if I go back to the monitor tab here again, you can see it right here. My g m order. It's currently trading. You can see out of the market column. This is the current value of that strangle. So $185 going over here, you can see this is my limit order, right? This is just a good to cancel in order, very simple. And you could see I want to buy the by that struggle back when it hits a value has a price of $76. So obviously there's still ways to go. The current turning prices obviously over twice the price at which I want to buy it back. But you know, this is a good to cancel order. So it just could be sitting out there and definitely, And hopefully at some point, if gm, you know, it comes back down a bit. Andi kind of lands in between. My my call. My put Onda. As time moves on, those option prices will deteriorate. So at some point, if GM kind of comes back around in my favor, the value of these strangle that I sold in Jam will come down to 76 at some point. And whenever that happens, this order will get filled. Assuming there's obviously sellers out there. Oneto sell those options back to me when I buy them back, which should be the case, because GM is a very liquid stock. Um, when that happens, you know, my phone would get pain. I'll get another notification. I also see a notification on my thinker. Some platform. It just says, Hey, you bought back your GM strangle for basically $76 or less. If that's the case and it's a done deal, you're out of GM. And actually, if you scroll down, you can see here under filled orders. These are all the orders that got filled today, so today was kind of a busy day today in the market. I mean, a lot of trades, all the trades here and read our positions that I, you know, involved selling options. So, you know, I sold to strangles and Ung sold an Iron Condor and target when you could see my GM orders here. This is from my adjustments. So, you know, bought back to 15 strike put and sold a new one at the 21 strike and so on and so forth. And the green ones, these green orders. These are just the good to cancel orders that were up here at some point that today, you know the price and came around for all these different stocks, such that, you know, I got filled at the prices that I want. So that's obviously a very simple way to kind of automate this process. You know, when I placed my orders automatically go in, set the closing orders to buy them back, and it's done Deal. I don't kind of monitor everything. 24 7 Whenever the pricing hits, you know, my target, the order gets filled and I'm out of the trade. So going back to g m just as an example. Um, just kind of pretending I didn't have a GTC closing order and GM the way I would set that up is I would just come back in and the same way I sold that strangle, you know, by right clicking and then going to sell, sell, strangle. I would now just go to buy and by the strangle, right? And just make sure the strikes. All right. So buying back the 25 strike call and buying back the 21 strike put that can obviously specify my price here and then set it to a GTC order. Now, right When it comes to closing borders, I always recommend using GTC orders just to help automate everything. Double check everything and then just hit confirming send. And it's a done deal. And then you can just come back here to the monitor tab, and your order will be kind of floating up here somewhere, and you'll be you'll be able to see, you know, the current trading price of where your positions that and you'll be able to kind of, you know, monitor that way if you want. So I believe that wraps it up for this video and the next one we're talking about how to set up alerts that will notify you when things actually go wrong. So we'll see the next one. Thanks. 3. Setting Alerts: all right, We'll come back to the next video, this course, and now we're going to taking a look at alerts, which is going to be a very useful feature in that it will obviously let you know when things go wrong. And this is especially useful if you're like me. And, you know, even though I love, you know, trading and being involved in the markets, I prefer not to just sit in front my screen and watch the charts all day so that when something does go wrong and I'm right there to catch it s oh, you know, I like to trade in the morning when the markets opened and the trade again towards theme are closure. And in between, you know, I've got better things to do. It can work in other stuff. So these alerts that I set up for each my positions are very beneficial to me. And I hope they are for you as well, so that when you are doing other things and you're not watching the markets, if something does go wrong, you will get notified immediately, and then you can respond accordingly. So if you look in the lower half of my screen down here and explain much more about what these different groups are in the next video. But basically this is where you can see all the different positions that I have, so and they're organized by different position types. So what you can see here are all my strangles. And if you look here, these little bell icons, this means I have alert set up for each one of these strangles. And if I click on one of them. So, for example, I go to my Twitter strangle. Click on that. You can see I have three different alerts set up, and currently they're all still active, which means they haven't, you know, been set off. Yet when they do get triggered, the status here will say, triggered on. That's what obviously, when I get notified, so right now. But for all three of my alerts on Twitter for my Twitter strangle, there are still active. Everything's still going well so far, but Asai said, if Twitter starts moving against me and in some way, then one or more of these awards will get triggered in, and then I can come in and adjust or close role whatever I need to do to potentially save this trade. So to make one of these alerts, it's actually very simple. You just got to go back to the trade tab here, which is where the option changes again. And you know this. These are the July contract that you're looking at here on. But I'm using my Twitter strangle as an example throughout this video so a zoo can see I've sold a call on Twitter with a strike of 37 they put with a strike of 25. And the way you would set up an alert based on the trading value of one of these options is you simply hover your mouse over whichever option you have interest in your right click, and then you can just navigate down to create alert. Click on that and by default, thinker, some will set up an alert for you. Based on just that single option that your mouse was hovering over so we can see just walking you through the information here. Um, assemble here is Twitter. Obviously, this is a call option that I've just selected on Twitter stock. These this alert is being set up for a single call option. Here's more information about it. Eso this corruption is obviously on Twitter stock again. This 100 means the call option represents 100 shares, which is very, very typical of option contracts. Next we see the expiration date, which is July 17th 2020 and the strike is 37. And obviously it's a call. So it's a little bit hard to read this information because there's no common or anything kind of separating at all. But this basically just summarizes all the most relevant information about this particular call option that I'm making an alert on. So then coming down here, the actual the alert is going to be set off when the mark of this cull option and mark means the average between the bid and the ask so and with this over here, we can see the bid for this. Corruption is 85 he ask, Is 93 you know the mark by default represents the average between the two. So you kind of the middle ground between 85 93 is 89. So that's typically what I like to use for these for these alerts. You click on this, you can make alerts based on just the bid or just the ask the last trading price. There's there's plenty different ways to make alerts, you know, kind of like the different order types that I think are some offers. They definitely give you many more options here than are necessary or that are useful itself by the fall. I just typically leave it at the mark, the average between the bid and the ask, which is typically how you get filling orders anyway. So this is a pretty realistic way to do it. And we can see here. This Lord's gonna get triggered when the mark of this option is at or above 0.89 So as the current trading price of this Twitter call options so that moves up by a penny, basically, Then I'm going to get notified. So, you know, obviously I would really want to change this number to be something higher or lower or whatever, but that's basically how thick or soon will automatically set up on alert for you. Now. My recommendation. When you are creating alerts based on the value of options, the basically the mark is to set these alerts on the current mark of your overall position , right? So obviously, with this Twitter with my Twitter strangle here, it's involving both a call and a put option at the same time. So of course I care about what's happening on the call side. But I also care about what's happening the put side. And ideally, I would like to have an alert that takes both into account at the same time. That's because one of my mechanics is I like to typically close out of my positions for loss. Just cut my losses when the value of my position hits a a price of three times the credit I initially received. So, for example, what I mean by that is if I sold this strangle and Twitter for, let's say, 100 bucks, I can't remember the exact price I sold this for. I'd have to go back and check, but let's say sold us for 100 bucks. And that means, you know, if the value of this strangle, if Twitter really starts moving against me, other has a huge rally or has a huge selloff if it moves against me enough to where the value of this entire strangle becomes $400 Then I want to get notified and potential just close out and cut my losses, right? And just to kind of explain that further, you know, if I sold it for 100 then I buy it back for 400 my net loss is $300 right? And 300 is three times, 103 times the credit I initially received. So ideally, that's that's how I want to set up alerts is I want to get notified when the entire when the value of my entire position hits a certain point. So to do that, let's say you had a strangle or iron condor credit spread to set up an alert that accounts for, um, the mark of your entire position. You simply go up to this eyes tab right here. Click on that, and now you can see all the different position types that thinker some supports. By default, we can see here strangles. I click on that, and then I could just come into here and specify the expiration date and the strikes of the contracts that I've sold. So these air July contracts again. So just select July. And then I sold the 37 strike call right there and then sold the 25 strike put double check that click out of it. And now we can see this Lords being set up for a strangle on Twitter. 17th of July expiration 37 25 strikes from I call in my put. And this thistle IRT will get triggered when the mark of the entire strangle here is at or above Whichever price I specify. And this by two fallen it gives you the current trading price. So this string was cruelly trading $422. So again, assuming I sold a string of 400 bucks, I want to get notified if the value of the strangle hits 400. So I can just like this and just type in four. And there you go. And just as a reminder, you know the reason why you only specify four in this box and not 400? It's because these option contracts represent 100 shares and option prices, whether just a single option or the value of the entire strangle or position, whatever it's always quoted on a per share basis. So whatever price you have in mind, so in this case with a strangle $400 is that price point. You just divide it by 100 that's what you actually input into this box. So once I have all information inputted, I just hit, create, and it's a done deal. Now, I also recommend that you make alerts based on the actual trading price of the underlying stock or E T. F. That your position is on because this alert will let me know when I should probably just close that my position for a loss. But I also want to get notified if Twitter starts moving and starts testing my short call strike or my shop my short put strike. And because of that, I might want to make an adjustment as opposed to just cutting my losses. So, um, the way you do that, you know, based on the trading price of the stock and regardless of the actual options, did you just go back to this time? Click on stock now, And so now we're gonna be creating alerts based on the training price of Twitter stock. So because I sold the 37 strike call option. I'm probably gonna want to get notified when Twitter stock rallies all the way, all the way to 37 and starts testing my call Strike. You know, at that point, I might want to make an adjustment. So, um, I would come in here, set this up. So when Twitter stock, you know, the mark average between the bid and the ask is at or above 37. Now, let me know, and I'll come in and probably make an adjustment. Likewise, because I sold the 25 strike put. I probably want to get notified of Twitter, has a huge selloff and starts testing my short put strike. So again, I'd set up a whole new alert one more time. Come in here changed to 25 and by default, think of some kind of smart. It knows that, you know, based on the current trading price of Twitter, which is 30 to 62 I'm creating an alert that says, you know, I want to be notified when Twitter hits 25. Then it knows to flip this to basically say at or below. So if twitter drops once the mark is at or below 25. Then let me know. So it, you know, like us. I've never had an issue before with it kind of screwing up the actual no ver be ege of this alert. But just double check this just to make sure logically makes sense and then hit, create and it's a done deal. So at that point, all my alerts will be set. So going back to my Twitter position here, I always have, you know, for strangles I always have three alerts set up to alerts for the actual trading price of the stock. So when they test my short strikes, or maybe my breakevens, depending on what I want to do with my position and then one more for the actual trading value of the actual position I have and last thing I want to mention before up this video up is you know, there is a way to set these alerts such that they will expire after a certain date. I think it's just easier to come in and cancel them manually. So obviously, when you close out of your position, right, you know, if Twitter stock moves in my favor or kind of stays where it is, and I'm able to close out of my Twitter strangle for a profit. At that point, I no longer need is alert set up so I could just come back into the monitor tab. Here, go to my Twitter opposition. Click on that bell icon and you'll see over here by kind of this over in this last calm, called actions. This is where you can actually cancel the alerts that you have. So you basically just click on one, these little icons for each alert, and that will cancel each one. And it's done deal. Because obviously, if you no longer have a position on Twitter, for example, if there's a larger still set up at some point, Twitter might trigger one of them and you'll get notified. And there's no point in getting pinned or receiving an alert for a position you no longer have. So just as part of the cleanup process, just remember to once you closed at your position to come in and cancel those alerts. So that wraps it up for this video. Thank you for watching, and in the next one will be talking about how to create all these different kinds of position groups to keep yourself organized, so see the next one. 4. Position Groups: Okay, Thanks for joining me here again for the next video of this course. And so now we're gonna taking look at how you can create these various position groups that will lie you to be much more organized and how you track the various trade that you have on currently. And we'll also like you to cease, um, important metrics about each position. So all this can be found again in the monitor tab of the Hickerson platform, and you can see here I already have a you know, a various number of groups set up currently. So just as a few examples, you know, I have a group for the Knick calls that I have sold another group for any call credit spreads. Although if I click on that, nothing unfold because I don't have any of those positions on currently. And just so on and so forth, you know, I've got put credit spread group A strangle group, Iron condors. I am butterfly etcetera. So I am. My recommendation for you is you know, whatever position types you are trading come into your Nickerson platform and create groups that correspond to those positions. And once you make new trades. Add the men's so that again you could be very organized and track everything very nicely. So to make a new group, it's very simple. You just come up to this top bar right here. Oh, it says position statement, beta waiting, etcetera. Go to the far right and you'll see this little icon right here. Click on that. You'll see an option to add group, so click that and then you just have to create a name for it. So, as an example, I'll create a group for straddles, although I don't really trade them very often. So just name it. Click OK, and then there you go. See? It got added right here. Obviously I click on it. Nothing. Nothing comes up because there's nothing in there yet, But that's where I would move any new straddle positions that I have just recently traded. So and with each group you'll find on the far right again, that same looking icon. You click on that, you'll see some options, right? You can delete the group, rename it if you want moving up or down. If you want your groups to be sorted in some way, I'm gonna go ahead and delete this one because I won't need it. So it's very simple to, as you just saw auto add and delete groups. And when you make new trades, the way you add them into these groups is when If you scroll down, you'll see this unallocated group. This one's always here by default. And when you make new trade automatically, that new position will go into the unallocated group. So if he unfold that, you'll find it in here. And you know there is some weirdness going on with Nick. Assume it might be a bug or glitch, but, um, you know the example I set up for you here again with my Twitter strangle. I moved it back to this unallocated group. Um and so it should just be Twitter here. That's the only one that's showing up, but for some reason that got some other ticker ticker symbol showing up as well. So, for example, with my beyond meat position myself an iron condor on that a while ago that click on the arrow to unfold the details, you'll see that the quantity under the quantity column for each of these contracts, it's all zero So even though it says that you know, I haven't moved my beyond me position. If you look right here in the Iran Contra group, I obviously have farted Click on that arrow you'd see under the quantity column that they're go. They're all ones. Some are plus or minus, depending on which ones I bought and sold. So if you come into the unallocated group and you see that you have some tickers that you've already moved, just click on the arrow and verify that under the quantity, they're all zeros, and then you can just ignore it and move on, right? I'm not sure why that happens to probably just a bug. That thinker swim has yet to get ironed out. So, um, going with the example here with my twitter strangle pretending I just put it on, just got the order filled automatically got put into the analogue hated group. You can see if I click on the arrow, um, under the quantity column, you know, a negative one negative one. That means I sold both the 25 put in 37 call. And the way I would move this to my strangle group is I would just hover my mouse over Twitter, right click. And then I go to move to group and then click on Strangle. And there you go. It automatically moves it. We're going to strangle group. You'll see it right right there. So unfold that there you go. My Twitter contracts have been moved to my strangle group, and I can track everything together that way and just kind of spending a minute mawr on going through the details here when you unfold, click on that air on you unfold the details. Obviously, you saw the quantity column that will tell you how many contracts have either sold or purchased for that position. You all. You also see the number of days left till expiration. There's also the Delta's here, which I'll get into in a minute. You'll see the trade price so that thieves were the prices of the contracts at the time I sold them and then under the mark column, these air the current trading prices of these contracts and see how they have changed and so on. So far, there's also this, um, P NL Open column. This will tell you how profitable or how not profitable York. Your position has become since the day you opened it. And then you're PML Day will show you how your position has moved other more profitable or less profitable. It just based on the current trading day. So by collapse that back up, you can see my Twitter strangle. Currently, it's since the Open, since I put this position on its lost $16.50. So not a big deal markets currently closed. That's why the penal day are all zeros. But these air definitely very important metrics that I look at very frequently to see how each position is doing in terms of, you know, profitability not coming back to these deltas. So by default, when you create a new group, this Delta column will not be there. You have to add it in yourself. So when you want to add in the Delta column and recommend you dio or anything else, there's plenty of the metrics that you can add for each group. The way you do so is you just go to you know the group in question, click on the gear icon and that will pull up this little dialog box and on the right hand side, these air all the currently visible metrics that you can see. And on the left hand side, there's plenty mawr metrics that you can click on an ad into the right hand side and that will eventually show up, um, down here, below in the in your position group. So, like I said, this Delta Metric was not here before. So basically, you have to go over here and you can just type in, you know, Delta in the box and it will show up. You basically click on it and then you click Add item and I'll move it over here. It'll show up here, and then you can, you know, highlight it and move it up or down if you want it in a certain order. But that's basically how you add in or or remove any metrics that you want to see. So, like I said, rock And then you add in that delta. Once you have it in there for each group, you can go over here and toggle this beta waiting on. Make sure there's a check mark there and then type in. I recommend using Spy because it's a very good proxy for the U. S. Stock market. And now what you'll see here for these numbers. Um, and you know, I go much more in depth into how this all works in my other course called options trading mechanics. But I'll touch on it briefly here, the delta here and since their bait away to Delta's. This will show you how, um, each position will stand to either make or lose me money based on how SP y moves. And since SP Y represents the U. S. Stock market, that basically means you can use these numbers to tell you how profitable your positions will will move or how profitable your positions will be based on how the U. S stock market moves during the current trading day. So as an example, if SP Y moves up by $1 that's how you kind of interpret these deltas. So for a $1 move up in the price of SP y looking at my Twitter strangle again, I would stand to lose another $1.67 so that would be added on top of the 16 50 on just as a side note for some reason they don't think or some decide not to use negative signs here for some reason. So when you see number in parentheses, that means basically negative. So you interpret this is negative. 16. 50. Not sure why they did that way, But just keep that in mind. So yeah, if sp y rallies by $1 my Twitter string would stand to lose about $1.67 more, and this is still an estimation is not gonna be exact number. This is not an exact science, but these numbers give you a very good idea of how your positions will move based on how the U. S. Stock market moves and these numbers are also relevant on, you know, the opposite side of S P Y were to move down by $1 than my Twitter string would become more profitable by $1 safety seven cents, and then you could see down here at the bottom. For each group, you will have the total sum of all these deltas. So as an entire position group, you can see how all these strangles, for example, or going to other make or lose me money based on how the U. S stock market moves during the current trading day. So that's why if there's any additional metric that you should be adding into your groups, I fully advise you to add in this delta and then bait away against SP y so you can have a good idea of how your portfolio is going to move based on how the stock market moves. And so I believe that covers it for this video on the next one coming up. I'm going to show you how you can be using the analyzed tab now to bait away your entire portfolio against something like S P Y in a very visual way. And that's typically how I come into my platform every morning and try to get a try and get a visual understanding of how my portfolio is situated, currently based on where the entire U. S stock market is. So we'll see the next one. Thanks 5. Beta Weighting: All right, welcome back. And so now in this video, I'm gonna be showing you how you can visually beta wait your entire portfolio against something like s P y, which will give you a very salt understanding of how your entire portfolio is situated against the entire U. S. Stock market on DSO. This will become much more clear once I get into all the details here. But it's very simple to do this. So now we're gonna go to the analyzed tab up top here, click on that, and is actually a couple of things you can do in here. So before we get to the beta waiting stuff, I do just want to show you this one quick feature which I believe is already set up by default when you first open up your thinker some platform. So you can also use this analyzed tab in this graph specifically here, too. Visualize any specific position that you have on so once again could be using my Twitter strangle as an example here So you can see in this little box right here. I've typed in the ticker name for Twitter and you can type in any stock ticker name or E T . F tica name for any particular position that you have on currently. So I set it up for Twitter. And now we have a graph that will show you this is my payoff diagram basically for my twitter strangle. And so the way you interpret this is looking at the y axis here. This represents my profit and loss on and you can see the zero line is right here on the X axis. This represents the trading price, the stock price of Twitter stock, and so on the blue line. Here in this blue curve is my profit and loss diagram on the day of expiration. And you can see that down here. Um, these blue purple numbers correspond to their respective curves. So looking at this blue number here, there's basically a date first. So 7 18 That's the expiration date for my twitter calls and puts that I sold. And as I move my cursor, you can see these numbers change, obviously. So my cursor basically represents where Twitter stock, you know, where I want. Teoh basically set up an example for where Twitter stock might move in the future, and then I can see how my profitability is going to change as a result. So looking at this blue curve again, you know, as long as Twitter is above $25 per share and below 37 basically, because those are the strikes at which I sold a call in the put As long as Twitter stays within that range by expiration, I'm going Teoh, you know, assuming actually holdings contract's expiration, which I probably won't anyway. But if I did, I will be looking to collect the maximum profit of looking at the blue numbers on the bottom left corner. $106. Right, So we're going somewhere Twitter moves within this range. I would make it the full 106. But as Twitter moves, if Twitter were to move below 25 or above 37 again, looking at these numbers down here, you'll see that they start to decrease until I hit these little red ticks which represent my break even point. So basically a Twitter trades below $23.95 below that point, I'm going to be actually losing money on this trade. And the same is true of course, on the upside. You know, my break even point is basically right around $38 should be six cents. So above that point, Twitter trades above that. I'll start losing money on the call side. And because this is a strangle, of course, you know, with, you know, having undefined risk. My losses are, you know, kind of scroll over, you know, there theoretically infinite, which, you know, kind of sounds scary, but stuffing not, because the probability that Twitter actually moves way out to these ranges is essentially zero. But that's how you can use the analysed. Have to visualize anyone of your particular positions. And also, I do just want to briefly touch on this purple curve, although it's much less important. Basically, this purple curve also represents your profitability for this position based on the current day. So looking at the date here 5 24 that's today's date, Um, and so because there's so much time left until expiration. That's why this Kurt is only profitable between this very narrow range. Um, and so what you'll find if you use this analyzed tab to look at your trades is, as you know, As time moves forward and gets closer and closer to expiration, this purple curve will slowly morph into this blue curve. And so, on the day of expiration, when that finally comes around, these two curves will be basically identical. But like I said, this purple curve is not as important, especially because there's so much time left expiration. So for me, what? I usually use this analyzed tap. For what? I'm just looking at a specific position. As I'm looking at the expiration curve. I just wanna have a visual to see. You know, what is the range in which Twitter can trade for me, too? Collect some sort of profit on this position so that the first way you can use the analyzed tab here and now getting into the beta waiting stuff the way you want to set that up is going back to this box where you can specify the ticker name of any stock re TF that you wanna look at. I'm not going to type in SP y, which is what I recommend you used. Well, that's a very good proxy for representing the entire U. S. Stock market, and I don't actually have any specific positions on his people. I That's why I don't really see anything here. So that's step one, and Step two now is going down to this tab. Board says Single symbol. Click on that and not go to portfolio. Beta waited and so click on that. And so now what this is going to do, it's going to bait away your entire portfolio against SP y basically the U. S stock market. And this would give you a visualization to see how your portfolio is going to do in terms of profitability based on where the U. S stock market moves right, cause every stock or E t. F has some sort of correlation or relationship with the broad U. S. Stock market. And, you know, generally speaking as the U. S. Stock market as a whole, a zit moves up as it rallies. That's gonna pull most stocks up along with it, obviously in different amounts, because every stock and UTF has its own unique relationship. But that's generally the case, and the same is true on the flip side, as SP y or as the U. S. Stock market moves down, that gently pulls down most stocks again in different ways. But essentially what? What? This Ah, this beta waiting is doing here is taking all the positions that you have in your portfolio in all the stocks and U T s that you have positions on. And it kind of aggregates there correlations their relationships with the U. S. Stock market into this diagram that you're seeing here. So that, as I mentioned, it gives you a very clear visualization so you can see how your portfolio is going. Teoh, um, perform based on where SP y moves and so you can see this line right here and this number down here. That's the current trading price of SP y, its current at 2 95 46 And you can see that, you know, there's definitely much less room for S P y to move on the upside in order for my portfolio to remain profitable right again, these red ticks represent my break even points. So it s P Y rallies all the way to basically around 3 17 I'd be looking to about break even . And then on the downside, I've been looking to about break even if spy trades down to about 2 48 And so before I continue here, I did forget to mention, you know, looking at this red curve, What is that? Well, this beta waiting technique allows you to put multiple curves on the same graph, and each curve represents a specific expiration cycle. Right? Because when you put on positions when you're trading every day or every week, you might have some positions in one month and some other positions in the next month. And so these these curves light to break up those different expiration cycles so you can see how your portfolio is going to do or how it's going to perform within specific expiration cycles. So, for example, this blue curve represents how my portfolio stands against the U. S. Stock market for Onley my June expiration positions, right? Andan this red curve, it's the same thing you know shows how many portfolios going to dio against the U. S. Stock market. Onley form on July positions right and again. You can see this down here with each each row here and each color corresponding to its respective curve. And you could see the dates here as well. So 5 24 again, this purple line. That's my profit and loss as of right now, although again this curve is not super important, as I've said, and then looking at thes blue numbers here with this date 6 20 that's the June expiration cycle. And then lastly, as I said with the July my July positions 7 18 that's the expiration date for the monthly July contracts. So, um, you can toggle this on and off, right? Going up to this tab right here I was his lines and then going to expiration. This will lie you to show basically up to four different expiration cycles on one graph. So if I just wanted to see the curves from my June positions, I would just go to plus one expiration. And now we're just looking at, you know, back to this blue curve. We're just looking at my portfolio for my June expiring positions and nothing else, right? If I want to add back in my July's, I go back to expiration plus two. And now I'm looking at or now I also have my July expression curve and one thing to mention , since I don't have a lot of July positions on Currently, This red curve is a bit skewed or incomplete right now. So as I put on Mawr July positions, this red curve will become more complete and it will be much more accurate. So just keep that in mind when you are just starting to put on positions for a new month and new expression cycle when you come in. And you beta, what? Your portfolio. Your curves might be a bit off for a short amount of time, and then once you get enough positions on, then it will have enough information for the curves to actually be the most accurate. So the next thing I want to show you is probability ranges. So this is an additional metric you can overlay onto your chart that will give you an idea of the probability of the likelihood that, um, spies going to trade within a certain range. So, as an example, if you go up to this area right here, you can see prob range. I usually just have it by default, set to one standard deviation, which is 68.27%. And then I can specify the date so typically what I like to do is specify the expiration date of the nearest cycle. So that would be the June expiration dates. I go to June 19th and now we can see that we have a range here that's bounded by these three lines. And the middle Linus Aziz you saw before represents the current trading price of SP Y. But this range will show you that there's about a 68% chance that s p Y is going to trade within this range by June 19th. So hopefully by the time I June June expiring positions, you know when we get to expiration, S p Y is somewhere within this range, so I can maintain some level of profitability. Now, just keep in mind, though, that because this is a one standard deviation range just 68%. That means there's still about a 32% chance that s p why could trade beyond the bounds of this range so it could rally even higher, obviously even higher than 3 18 or fall even further below to 71. But generally speaking, one standard deviation range is where I like to be. And that's where I recommend you use as well because, you know, with us about a 70% chance that s p y traded within this range, you know, most the time. A one standard deviation range is going to be pretty accurate. When there's, you know, two or three standard deviation moves that's obviously gonna hurt. But those happened very infrequently, and it's very hard. Teoh create a portfolio to account for those gigantic moves. So focusing on a one standard deviation range is what I think works best. And one less thing to mention here is you know, once you have all this set up, this will also be a very good way to or for you to see what kinds of positions you should be putting on during the current current trading days. So, you know, if, for example, I wanted to have my curves for the to the to the right so that, um, I maintain profitability if Spy has a really big rally, right, you can see basically on, you know, at the furthest end of this range At 3 18 I'm barely, you know, looking to break even, or maybe even looking to have a small loss here. It s P y we're just really trade all the way up to 3 18 So looking at the looking at this information, my best course of action here is I most likely gonna want to put on some more bullish positions during the current trading day to push these curves further to the right and just give myself more room for S P y to rally high and for my portfolio to still be profitable to some extent, right? So conversely, if I was, if SP y was way further down here and maybe the left left hand um, end of this range was way beyond my, um my break even point on the downside, then I probably want to put on some more bearish positions to shift these curves to the left. So, um, the point of making here is you can use information to get a very good understanding of the kinds of trades you should be making today or during the week to give you a portfolio of the most balances possible compared to the U. S. Stock market. And the last thing I want to show you here in this video is how you can't analyze trades basically see how they're going to affect your portfolio before you actually hit the confirming send button and actually get yourself into that position. So, for example, you know, looking at this, you know, like I said, I might want to put on some bullish positions to shift these curves further to the right. So let's say I'm bullish on Apple, so going back to the trade tab now, um, if I go to, you know, the apple option chain actually have this order already set up, but basically coming to the apple Action option chain, Um, I might be looking to sell a put option, right? That's a bullish strategy. So I might be looking to sell this to 90 put, which already have set up right here. Um and so before I hit confirmed send and place the order. I obviously want to see how this is going to affect my portfolio. So hovering the mouse over anywhere on this red bar, I can right click and then go to analyze trade, and that will bring me back to the analyzed tab. And one annoying thing thinker some does is it will automatically change debate a symbol here to the ticker name of the stock that you were just looking at. So you have to come back and change it back. Teoh sp y So change it back to SP y and now you can see looking down here. This is world. My positions are, um you can see the apple put that I'm looking to sell has been added in You can see it right here and currently with these check marks that basically means it's currently factored into my portfolio. And so I like to do first is tuggle it off to see how my portfolio stands before I even make this trade. And the most important thing I look for is how this is going to affect my break even points . So this is a July expiring option I'm looking to sell in Apple. So even though we'll also affect this blue curve for my June, my June curve, it's mostly gonna affect my July curve, this red one. So looking at my break even point for this July curve, it's right around if spyware to trade up to 3 1991 So now if I talk with us trade back on and included in my portfolio. You can see now the red curve, my break even point has moved up to about 3 23 95 So that gives me some extra room. Obviously, if Spy continues to rally higher and higher and higher that you know by July expiration spike can be all the way up to 3 23 And I'm I'm still looking to about break even. So, how they recommend you, Ah, do this kind of process. So when you're looking to make trades, set up the order. But before you actually hit confirmed send analyze the trade first by bringing it back into the analyzed tab here and then looking at basically by toddling and on and off See how it affects your break even points, right, cause obviously, if you want these curves pushed to the right, if you want to get more bullish than obviously, you want to make sure that by placing this trade and apple that it does have that effect, that it actually does push these curves further to the right. Otherwise, what's the point of making that trade right? So I hope that all made sense and that concludes this video and so in the next one will be showing you how to set up and use your watch list and think or swim. So that would be very easy free to come into your platform every day and find the stocks need T efs that are currently exhibiting very opportunistic situations to trade in, so see the next one. 6. Watch List: Okay, welcome back. And so now in this video, we'll be showing you how you can create a watch list in the Thinker, some platform that will contain the various stocks NTS that you care about. And that'll make it a lot easier when you come into your platform every day to scan through that list and find which stocks and ETFs are currently in opportunistic situations that she might want to make trades on. So to get to the watch list feature of the platform here, you're now gonna go to the market, watch tabs to click on that, and by default, you should see some sort of default watch list you can see right here. It says default. This is the watch list that is, I guess, already built into the platform. It just contains a couple pretty popularly traded stocks and NTS and things like that. So you can add on to this list if you want, or you could just create a brand new one, which is where I recommend you. Dio um And so the way you do that is you can go to the far right and you'll find this similar icon again. Click on that and then go to create watch list and that will open this dialog box where you can first name the the watch list that you're going to create. So I'll just go ahead and call it my new um, my new watch list just like that. And so once you have unnamed, you can come down here and this is where you can actually add in the various stocks E t s that you care about. So under the symbol header right here, just click on this box and type in any ticker symbol for the stocks. E T f s that you want your in your list. So, for example, if you wanted SP y in your list, you just happen. Why? And then you can click at symbol or you can also just hit the enter button and that will automatically enter SP y into the watch list. And then you can just repeat the process, right? So under SP y click on that box again and now you can add in another taker Simple. So maybe I want the utf for the Dow Jones in my list as well. So that's d I. A type that in hit. Enter. There you go, then. Obviously, maybe I want apple. It's a very liquid stock. So added in just a simply is that so Once you have all these stocks and E T. F s that you want in your list, you can just hit save, and that will create your new watch list and the way you make it show up here in the market Watch tab by default is you go up to this, um, this box right here. What says default? Click on that, go to personal and then you'll be able to find that new watch list you just created right in here somewhere. So my personal wash list, which I already created a while ago, it's just called my wash list. So I'll click on that. And there you go. And so every time I open up the thinker some platform and go to the market watch tab, my personal watch list will automatically be opened up and visible for me to see and you'll notice, along with the various ticker symbols and whatnot, you get to look a lot of different metrics and things that you might care about to help you make trades so on. These are all real time metrics. So when the market is open, all these numbers will be changing. So that'll give you real time information to come in here and see which stocks you tips. You might want to make trade zone. Um, that being said, some of these metrics that showed by default, you may not want them in the in your watch list. And conversely, there may be some additional metrics that you want added in, so you can customize which columns in which metrics show up here, and then you customize your watch list is you go to the far right again and you'll see this very small little gear icon very hard to see. But if you click on it and then go to customize, it will pop up this little dialog box once more. And this is where you can add in or remove any metrics from your watch list. So on the right hand side, these are all the currently visible metrics that you'll see on your watch list and on the left hand side. These are all the other available options that you can add in. So when I recommend you do is you know, if you are trading options like like me, for example and you are specifically selling options, particularly when, um implied volatilities high. I recommend you add in the ivy percentile metric as well as the correlation metric. This is especially useful if you want to place trades that are ideally as little correlated as possible toothy US market. Because by default, if you look at this Correlation column right here, all these numbers show you for whatever e, t f or stock you're looking at, how correlated it is to the S and P 500 Basically. So, ideally, you want to get to is close to zero as possible. Um, and if you see the numbers closer, toe one or negative one closer to one means it's very positively correlated to the market. So as the market rises, typically that means so will the price of whichever stock or eat. If you're looking at, if it's on the negative side, that's means it's going to be inversely correlated to the market. So as the market rises, then for stocks tts with negative correlation, those will typically fall in price. So I recommend you added that Correlation column as well. Eso the way you do that, you can simply go to the text box right here. Click on that and then type in ivy percentile or correlation the pop up here. Just click on him, make sure they're highlighted and then hit at item to bring him over here. And then you can use these buttons to move them up or down in your list if you want your metrics sorted in some way. No. Once you have everything in place, you could just hit OK? And everything should be updated on your list now. One thing, Teoh. Just keep in mind here. I believe this is a typo or just a small bug, but the I v percent on my trick it's actually going to show you the ivy rank of whichever stocks E. T s you're looking at. And this might be a little bit confusing because Ivy percent tell is actually a another metric. And I will say, you know, obviously I V percentile and Ivy rank are very similar. They both show you the relative levels of implied volatility. They just kind of give you different perspectives on that But just remember, if you're using ivy percentile in your watch list, it might be named this way. But these numbers that you're seeing in this column they're actually gonna be ivy rank. So once you have everything set up on your watch list the way you want, you can now come into your your list every day. And, you know, depending on which metrics or columns are most important to you, you can quickly scanned through it for me. I'd be looking at the ivy percentile, or I'm gonna call it Ivy, rank the Ivy rank column the most, and so I can look through my list here to find which stocks E. T. S are currently exhibiting Hi implied volatilities. So is close to 100 as possible is what I'd be looking for. And I've been said, if you have a large list, it's going to be a bit tedious to try and comb through, defined which numbers or which metrics are appealing to you. And that's because currently there's no order to my list. So there is a way to sort your wash list by whichever metric that you want, and so the way you do that you simply hover your mouse over the column header for whichever metric you want your list sorted by. So for me, I look Teoh sort by the Ivy rank, and I can click on it. And now everything is sorted in my list by Ivy rank from smallest all the way to the greatest. And if I click on it one more time, it will actually flip it. And now everything is sort of by Ivy rank, but from greatest to least eso. Now it's community especially easy for me to come into my watch list and just start from the top of my list and work my way down, because now everything is sorted by implied volatility rank. And I can just like I said, start from the top, work my way down and figure out and find whichever stocks you tiffs that I might want to place trades on. So if you care about Ivy ranked, then you could do this way. Or if you care about something else, maybe correlation. Or if you want to look at maybe which stocks have had the biggest percentage changes either negative or positive, you can use this percentage change metric as well. So whatever works for you, it's very easy to come in. Sort your watch list by whichever metrics that you want and then come through your list from top down to find trades that you might want to make. So that wraps it up for this video and the next one coming up, I'm gonna be showing you how you can use the various charting and technical analysis features that thinker some offers as well. So seeing the next one Thanks. 7. Charts & Indicators: All right, welcome back to the next video, and this one will be looking at the various charting features that think or some offers. And this will, of course, be another great additional feature that will allow you Teoh, analyze how certain stocks E. T s removing and then ultimately to decide yes or no on whether or not you want to make a trade on that. So to get to the charting tab of Baker Swim, he said to go up here to where it says charts click on that and there you go. And so my charting tab is a little bit customized here. So by default, when you first opened up the thinkers from platform for the first time, I believe you will just have the price action chart of here, which is basically just a time Siri's that shows you the daily price movements of whichever stalker et if you're looking at so right now it's set Teoh sp Why? Which is just that s and p 500 e t f on. And so these, uh, these candlesticks is just showing you a one year time. Siris of the daily price action for S P y. And so, as I said, you know, this is a very customizable section of the platform. So, um, you can see down here I have form or different graphs or indicators that I like to have on the platform. Although I will say the three in the middle here, This is the Mac D indicator, which is supposed to show you kind of momentum in the stock that you're looking at. I have a C C I indicator, which is a trend indicator. And then I also have an R S I indicator. Which kind of shows you the how overbought or or how oversold the stock is the Julich, Annette And I'd say I used these three very rarely. Sometimes they just give me an idea of maybe where the stock is going to move in the future , other either up or down. But, um, for the most part, time mostly just used the price action chart up here, um, and taking note of this yellow line, which is the 200 day moving average. I'll get more into that in a second. But for the most part, I really just care about the price action chart and then this ivy rank chart down below here, which obviously shows me the relative level of implied volatility for S P Y in this case. And, you know, from my style of options trading, which is really, um, focused almost 100% around, you know, implied volatility. This is, of course, what I'm gonna care about most thes three indicators in here are just kind of They just served to give me a little bit of additional help if I want it. So I'm not really gonna go into how these indicators work necessarily. It's not really the purpose of this video because there are dozens and hundreds actually of different technical indicators and charts and graphs that there was some offers and that you can include in your charting tab here. So if you are aware of smother technical indicators that you might want to include in your platform, you are, of course, free to do so. But, um, it's really gonna be a subjective thing, right? What I will show you is obviously how to add in any new indicators or graphs and charts that you may want to have in your charts. Tabas. Well, so add in either indicators on the price action chart or to add in completely new graphs or indicators. You seem to go up to these studies box right? Here are the studies button. Click on that and then go to edit studies. And this will once again pull up a dialog box and you can see on the right hand side here. These are all the different indicators that I currently have on, um, the background here. But they're kind of separated into different categories, so you can see the first categories price. So any study or indicator that you add in this section is going to show up on the price action chart up here, right? Cause they're all they have to do with the price action of the stock that you're looking at . So for me, I have to indicators or two studies on the price action chart, the first of which is the simple moving average, which is that yellow line right there. And so this is the 200 day simple moving average for S. P Y. And I like to have it on there because it's a good It's a good way to see how high or low the stock is that you're looking at. Typically when a stock it's pretty elevated above the 200 day moving average. That could be a sign that at some point in the near future it's gonna come back down to maybe touch the 200 day moving average. The bounce back up. Likewise, if it's very far below, which is what happened when the corner bars pandemic really hit at the worst of the worst part when it gets to a very oversold level, way below the moving average, chances are that some point in the near future is gonna bounce back up. And today it just sp y just hit that 200 a moving average so it could break through and go higher or it could kind of come back around. But I do like to have that moving average in there just to kind of give me that idea. But so I have that. I also have Bollinger bands not gonna go too in depth into what those are but basically, um, the outer bands here. What you see in purple they will show you if you know the stock is looking at, is touching either one of these purple bands. That typically means that the stock or in terms of the price, the price action. It's pretty far away from where it should be. And what I mean by that is, you know, if in this case on its people, why it's really hugging this outer band right here, which is pretty indicative of the fact that at some point the future is going to come back off that band and go either to this blue line, which is another moving average. Similarly, now it's kind of hugging this outer purple band on the other side, so hopefully at some point the future it comes back down. But the point I'm making here is in this section right here for price price studies. You can add anything you want that will be helpful to you, and it should appear on the actual price action chart that you see it right here. There's also a volume category as well, So if you care about the trading volume for whichever stock you looking at, personally, I don't care too much about that. But if you do care about volume, you can add in any volume studies that you want there and then below that, you just have room to add in more graphs and charts, technical indicators and things like that. So that's what the Mac D indicator is. You can see it right there. Below that is the C C I indicator than our Asai. And then, lastly, I have the ivy rank. You'll notice, um, next to each name of whichever indicator that I'm looking at. Here you see parentheses and some numbers and some words and what not. You're basically the settings of each indicator, so you can really find Tune how these indicators are working, especially in regards to like, how many days they are, how much data they incorporate into their price points and things like that or their data points. So you want to customize these parameters. You can go to these gear icon. Click on that and each indicator or each study will have its own little dialect box, where you can go into these little parameters and adjust them the way you want. So that's definitely a nifty feature toe have. One thing to note, though, is if you do want to have the Ivy rank graph showing down here below by default to think or some platform does not include this indicator at all. You actually have to completely added in from a I think that calm think scripts. Basically, it's a A script comprised of computer code that you can add into the platform, and it will basically create this graph for you. So I will post a link to this thing script which I found online opposed to link to this in the project section of the course. But basically the way you wanna create this ivy rank chart, if that's what you want to include in your thinker, some platform is go to that link. You'll see this, um, you know, copy and paste where it says, start below this line and above that line. I've already gone ahead and copied it. So once you have that done, you can come back to your platform and then go to create and just get rid of what they have here by default and go out and paste in everything from that site. Um And then lastly, just give your new study or your new Ciara name. I called mine Ivy Rank, and you could see Of course, it's name would exist because I already have included. So this name is something slightly different. I ve underscore rank. Once you have a name, you can just click, OK, and then it should pop up right there at the bottom, and then you can just hit okay and will be added in. So I like I said, I have it added in there something. Go ahead and just delete it. But basically, that's how you create a brand new study using this thing script code. And once you have that will set up, you could basically start using it from then on. The next thing I want to show you is, you know, right now, I believe by default, think or some will show you a one year time. Siri's Which of all the charts and indicators that you have included in your charts tab. If you want to change the time frame, which you can do is go to this tabloid says just the letter D. Click on that and you'll see here. There's some default options that will allow you to change the timeframe of your charts. So if you want to go from right Now it's set by default to one year and one day for each data point, you want to change it to 20 days and one hour data points. Just click on that and there you go. Now we're looking at the past 20 days, and each bar is, um, one hour of time so you can go even more narrow than that. You can go down to one day one minute. So all this information is just from today's trading or today's price action. And if you want to zoom in even closer, you could basically go to whichever interval that you want. And then just click drag, and you can automatically zoom in even further to whichever, you know, Like I said, time frame that you want to get down to that. If you wanna go back, you can just go back up to that little icon again and then reset it back to one year one day. So I like to use just the one year, one day timeframe. Um, and one thing to note, the Ivy rank indicator has to be used on a one year time span. So, um, that's obviously why doesn't show up. I go down to 20 days, for example, you can see the ivy rank indicator just disappears. So you have to have at least 14 years worth of daily price action for that indicator to actually show up. So that's why. Mostly stick to just the default one year, one day. But of course, sometimes if I'm looking to be a little bit mawr nit picky and trying to figure out maybe the direction of a certain stock if I want to be a little directional on it with my trade, then all come down to the 20 day, 20 day, one hour time frame just to get a closer view of with the price action is doing, Um, and I could see the scale line. It's no longer a 200 day moving average. It's actually a 200 period moving average. So since this, um, this time frame is basically sliced up into one hour increments, this yellow line is now looking at the past 200 hours. So this just gives you, um, or current view of the price action. And but same concept applies, you know, once the the stock, it's really far above or below the 200 period moving average. Chances are at some point it's gonna come back around to at least touch it or get very close to it. So, for example, if you why we had a pretty big rally today and it's starting to sell off a little bit, so my assumption would be maybe tomorrow or sometime this week s people will come back down a little bit more, get close to that moving average and it might bounce back off. So that's how I tend to use the different time frames and some of the indicators and whatnot. But like I said before, it's kind of a subjective thing. There are so many different indicators and charts and things that you can look at and include, and there's even more ways to interpret the data. So, you know, I might make it a separate course on technical analysis, although that's really not something that I hardly ever use. But I recommend if you want to include some charts indicators, just go online and read some articles, or I'm sure there's other courses on skill share that go into different indicators and things like that, how to use them how to change your settings and things like that. So I believe that wraps it up for this video and in the final video commitment. Next, I'll be showing you how to use the scanner feature in the thing Kristen platform that will allow you to find new stocks in the event that your watch list is a little bit stale and you want to find something new. So using that scanner is something that I use, you know something frequently to like. I said, find any new stocks or E T. F set their that are currently in opportunistic situations, so the next one. 8. Stock Scanner: okay, We'll come back to the final video in this course, and so now we're gonna be looking at Thescore in or Tool, and they think, or some platform which, as I mentioned in the previous video, allows you to find new stocks that aren't currently in your watch list. Um, and this is especially useful, Wayne, you've already scanned through your watch list and you can't finding any new trades. Maybe the implied volatilities just isn't there where you want it to be, or something else. But the scanner tool is basically a backup that you can come to to try and find any new stocks that should may not have thought of before. So to get to the skin or tool, you simply go to the scan tab up top here. So click on that and that will bring you to, ah, the dashboard here for the scanner and so you can see up top here. This is where you can set all your different criteria, because obviously there are thousands of stocks that this Skinner can look through. And if you can narrow down that list as much as possible so that you yourself, you can see down here. These are actual stocks that my Skinner will show me. I obviously don't want to be coming through, you know, hundreds or thousands of stocks, right? So my criteria here is pretty specific. So it's only showing about 26 total stocks that I might want to treat today. So the criteria itself is categorized into different groups. You can set criteria for the stock itself. You can set criteria on the options for that stock. And there's also criteria for different studies like, for example, ivy percentile, which is actually Ivy rank again. Um, just keep that in mind. I have you percentile is, you know, quote unquote. A study rights doesn't have to do necessarily with the stock in terms of the volume or the market cap of the company. The bid of the stock, that kind of thing. It's a calculation that comes from looking at past data past you implied volatility, data points, and so that's why it's called a study. But point being is, you know, you can see from my criteria here I have five and total, three of which are, you know, stock criteria in the first of which is about the volume. Um, I know back on the charts section in the previous video, I don't I don't care too much about volume, but for the sake of the skin or tool, I do care about it a little bit because liquidity is very important when trading options or stock or really anything. So I do like to look for stocks that have at least a 1,000,000 shares traded during the current trading day. That's one thing keep in mind here. All the criteria you set will force the scared to look for all stocks for the current trading day. That me this meet this criteria. So for stocks that have, you know, had at least a 1,000,000 shares traded today, they will show up down here below the next one is You know, I like to look for stocks that have a market cap of at least one billion. You can see here this is 1,001,000 stated and millions. So looking for companies with bigger market caps, they're more likely going to be bigger name stocks, bigger name tickers, which is also gonna play into the liquidity. Typically, you know, companies that are very well known, like Apple or Microsoft Google. These are very heavily traded stocks because they're very popular. Everyone knows about them, so they're great trading vehicles. The next stock criteria I have is the bid price. Eso This allows you to specify the price range of stocks you might want to trade, so you can see here. I don't want stocks to show up that are under $10 per share on, and conversely, I don't want stocks show more than $1000 per share. So I lost me to set a price range for stocks. And next, I have an option criteria, which basically means that Show me stocks that, of course, have options available and specifically, show me stocks that have options available that I can trade with expirations at least 28 days from today and at most 60 days from today. So this is generally my range for selling options, right? I don't like to go beyond 60 days. Don't like to go below 28 or 30 days, so it allows me to specify the expiration date range for the option contracts, and then, lastly, I have a study or a study criteria, which, as I pointed out earlier is about ivy percentile. And this allows me to specify, um, you know, to only show me stocks with implied volatilities basically between 50% and 100%. Generally, this is more like to be no both for ivy rank and ivy percentile. Again, keeping in mind this is actually ivy rank. We talk about here. It is misnamed, but generally, about 50 is where I'm most interested in placing trades. Although sometimes when you know the general trading environment is, you know of low implied volatility. Sometimes I might have to come down to 40 or 35. Just depends, but by default like to keep it at 50. So this is also gonna be a bit of a subjective thing in terms of you know which criteria eyes going to best for you. What kinds of things do you care about what you want to look for? The bottom line basically is, you know, try and get enough criterion here and be specific enough such that the list of stocks that gets spit out from the Skinner is not, you know, super large. You know, I would say if the scanner is spitting out more than 200 stocks than I would try to make your criteria a bit more specific, cause you know, it may give you a less of stocks that meet your criteria. But once again, you have to come through it yourself to try and find the stocks that you actually might want to trade. Basically, just to kind of give you demonstration here. Once you have all the Criterion place, you could just come down here, hit skin, and it will take a few seconds to load their ago. And it just spits out the same list that you just saw previously. And you can also use these buttons here to sort them however you want. So you know, again for me, I care most about implied volatilities. So I have this list sort of by I ve rank on descending. So from greatest to least, and you could see in the far right column well, it's kind of cut off. This is the ivy rank for all the stocks that are showing up here. As you can see, they're sort of from greatest toe least so kind of like the my actual watch list back in the market. Watch tab. I would just start the top here and kind of work my way down and find any new stocks that I might want to place Trade zone. And one last thing I'll show you is you can see right here these little diagrams or charts . This will show you visually how specific your criteria is. So, for example, looking at the first stock criteria in terms of trading volume, um, this little graph here will show you, you know, the trading volume of all the different stocks that this Skinner can look through. And this blue window right here will show you the range of stocks that meet this criteria at least one million shares trading that day. They will show you that basically, only this small, select group of all the stocks that the skin it looked through meets this criteria. So I would say this is generally a pretty specific criteria. I have here one million shares and likewise here looking for stocks with a market cap of at least one billion, you can see there's plenty of stocks with the market caps under one billion, but only really at the tail end of the range over here. This is where there are just a few stocks that do you meet this criteria so this is definitely good way to, ah, visualize how specific your criteria is. So in the case that your scanners spitting out a lot more stocks than you want, you could come up here and see which criteria that you might want to make more specific on . And you can also actually just click and drag and narrow these windows yourself without actually changing the numbers. So you just kind of want to go like that. Maybe like that you know you can. It's very easy to get more specific that way. And then, of course, don't forget to come down here and click the scan button again to kick out the scanner based on your new criteria. So it's a little bit of a fine tuning, tweaking kind of process to get your list down to a reasonable amount, but probably just take a few minutes, honestly, so, and that covers it for this video. So in the final one coming up next, I'll just be dropping some things up and then I'll be sending join your way. So see the next one. Thanks 9. Wrapping Up: All right, congratulations on finishing this tutorial. So now you can take a look at the course project down below, which just contains a few short exercises to help you get started with the platform. And please do remember that if you are just getting started with trading practice and patients are both key here as it will take some time to becoming profitable. Trader. So my advice to you is, you know, if you are just getting started to start with a paper training account basically using fake money and there is a way to do that in the thinkers and platform, So when you open up the platform in the logging menu, you will see a little toggle that you can click on that will bring you into a paper trading account, and that will allow you to practice and make mistakes and learn from them without actually risking real money. So once you become more confident with your training technique, wherever that is, then it's very easy to switch that toggle to go back into a real money account. So that being said, thank you so much watching this course, I hope you found it to be valuable. I am Scott re skin. I do try and publish one new course every two weeks. So please do also check out the other courses. I haven't skill share. And also follow me on the platform as well. So you will get notified every time I publish new content. So thanks again for watching, and I'll see in the next one happy trading.