Watch Coach D place a bracket order for a long put based on the Scouting Report Bear Team pick IBM. Learn how to place your entry, and exit criteria in advanced using this effective method of order entry.
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7 Replies to “Case Study: Bracket Order Put IBM”
Great video !
I have been start testing the STOPLIMIT in TOS paper and i have to dig into more to understand how it really work.
I found that the STD will turn into MARKET order once the stock price hit the STD but since i have the STOPLIMIT, it will not trigger/enter until the price move into the STOPLIMIT price.
Initially i just created LIMIT order for opposite trade as stop loss and found out it did not work as expected. It open the trade when it hit my 1 limit order that have STD but it immediately trigger my second LIMIT order that do not have STD.
so i figure out that i also need to create STOPLIMIT order on the opposite trade as my stop loss with STD so it have room for the price to move within my pain tolerance.
The paper account isn’t exactly like the real-deal the mechanics are the same but actual fills may differ. There are many ways to approach order entry, this video is one of the more simple methods.
I am having trouble in Paper $ too, On “D” I put in my Stop Lmt. for the Trigger of $73.44 witch gave me the a stop of $2.40 Limit $2.45. Then when I put in my 1st. Target of $74.50 all I get is $2.45????Really? $1.06 movement in the stock and no ROI. Is that right? Should I put everythink at the $76. target or am I doing somthing wrong?
Enjoyed the video. Thanks coach D!
When entering trades, I use the advanced settings to trigger action based on underlying stock price. Have a custom template defined that saves time when entering many orders. It’s great to know there’s an easier way to do a complex bracket order!
The one problem I’ve encountered is that TOS doesn’t seem to allow ‘All or None’ type of trades on the triggering order in a bracket. Is there a way around this?
When you put in the limit price based on expected price of the stock and good till canceled. How does time effect that, like theta. Would that be a problem when getting filled, would we have to adjust the limit and stop daily if we dont get filled ?
Coach D,
Thank you so much for this video! This is exactly what I needed to know. Now I can set my trades up on Sunday and not struggle getting them done during my Monday work day.
So using this method I calculate a Debit Spread theoretical price at a given stock price analyzing each leg . Correct ?
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