How to buy a call or put on the platform "Thinkorswim"

How to buy a call or put on the platform "Thinkorswim"

To buy a call or put on the platform "Thinkorswim," follow these steps:

1. Navigate to Watchlist: Start by going to your watchlist.
2. Use the Search Bar: Type in the name of the stock you are interested in. For instance, type in "Square."
3. Select Expiration Date: Click the drop-down button to choose an expiration date. It's generally advisable to pick a date a week or two out.
4. Option Selection Page:
   • Calls: The left side is for calls.
     • In the Money (ITM): Represented by anything in the purple-shaded area.
     • At the Money (ATM): Indicated below the gold line at 280.
     • Out of the Money (OTM): Any number below 280.
   • Puts: The right side is for puts.
     • In the Money (ITM): Indicated in the blue-purple shaded area.
     • At the Money (ATM): Defined as any value at 257.5 above the gold line.
     • Out of the Money (OTM): Numbers from 255 to 247.5.
5. Select and Buy:
   • Choose your desired option, for example, an at-the-money call.
   • Select market order type.
   • Enter the number of contracts.
   • Click "Confirm and Send" to complete the purchase.

By following these steps, you can efficiently buy calls or puts on Thinkorswim.

Keywords

• Thinkorswim
• Buy call option
• Buy put option
• Expiration date
• In the Money (ITM)
• At the Money (ATM)
• Out of the Money (OTM)
• Market order
• Confirm and Send

FAQ

1. How do I navigate to the watchlist in Thinkorswim?

• You can find the watchlist on the main interface of Thinkorswim.

2. How far out should I set the expiration date for an option?

• It is advisable to choose an expiration date that is a week or two out.

3. How do I know if a call option is in the money (ITM)?

• On the calls side, any value in the purple-shaded area is considered in the money (ITM).

4. Where do I find the strike price that is at the money (ATM) for calls?

• For calls, the ATM strike price is located below the gold line at 280.

5. How do I distinguish between in the money (ITM) and out of the money (OTM) for puts?

• For puts, in the money (ITM) values are in the blue-purple shaded area, while out of the money (OTM) values range from 255 to 247.5.

6. What do I do after selecting an option?

• Choose the market as the order type, enter the number of contracts you wish to buy, and then click "Confirm and Send."