Viewing an Option Chain and Placing an Option Orders in Handy Trader
This tutorial will demonstrate how to view an option chain and place an option order in Handy Trader.
The first step to view an option chain is to tap on the More Menu button and then Order Ticket. From there you can type in the symbol under the search area. In this example we will enter The Walt Disney Corporation, Symbol DIS.
Once you type in the symbol and click search, you will then want to select the appropriate product and exchange you want to trade on. If you are approved to trade other products or in other countries, you may see other products and exchanges under the drop down menu. Please make sure you select the appropriate product any exchange. In this example we will select DIS on the New York Stock Exchange and select Option Chain and Strategy Builder.
If you would like to see all available strike prices you can scroll up and down on your screen. If you would like to change expiration dates you can scroll to the right under the expiration column headers.
You will also see the underlying stock price on the top section of the option chain. The calls are on the left side and the puts are on the right side. Let’s say you want to look at the October 19, 2018 110 strike calls. You can tap anywhere on the option and then tap the green buy button.
You will want to scroll down towards the bottom to view the order details. By default a limit order will be displayed. You can change the quantity. Let’s say in this example we will place an order for 5 contracts. You can change the order type but for this demonstration we will keep it as a limit. If we wanted to purchase the contract at a price or 1.00 we can then modify the Limit Price. In this example we will keep the Time in Force (TIF Column) as a day order. A Day order means that the order is good for that trading day only or the subsequent trading day if the market is closed.
It’s important to note that with a limit order to buy you are specifying to buy that option at the limit price you specify or better. With a sell limit order you are specify to sell that stock at that limit price or higher. Please note that limit orders guarantee your price but do not necessarily guarantee your execution. There has to be a market for the option price that you specify and there could be instances where there are orders ahead of yours or there are only enough contracts to fill at that price.
You can preview your order by tapping the preview button. You can then review your order and if you have a margin account, you can see the margin impact the order will have as far as margin requirements go. When you are ready to submit your order, you can slide the Submit Buy button. If you would like to view you order you can go under the Orders and Trades button in the menu tab. If you would like to modify your order you can tap the order and then select the modify button. From there you can enter in a limit price. If you would like to cancel the order, which will also cancel the other order, you can select Cancel.
Thank you very much for being a Zacks Trade client. We hope you enjoyed this tutorial and found it helpful.