With the TD App, you can access comprehensive option chains and trade single or multi-legged options directly in the palm of your hand.
First, bring up a quote on the underlying stock, ETF or index and scroll to the middle of the page. Then, tap to display the Option Chain. Calls are displayed on the left, Puts are on the right, and the strike prices are down the middle. You can also filter by Expiry Type, Option Type, or choose from the different expiration series to be displayed.
To efficiently use the amount of screen size available, you can also choose to display the number of strikes in the chain. For example, six strikes will show the six near the money call and put strikes. In-the-money options are shaded in light green, whereas out-of-the money options are not shaded.
The option chain is the one-stop-shop for option pricing and getting prepared to place a trade. Just remember, while the snapshot quotes shown are real-time, make sure to hit the "refresh" button to get the most up-to-date information.
When you're ready to place a trade, tap the bid or ask prices of an option, click continue, and then you will see a detailed options quote. Here, you'll find the most recent prices, volume, day high and low, as well as other useful information. Tap the Buy or Sell button to create an order.
The first thing you'll need to do is verify the account in which you are placing the trade. Adjust if necessary. The selected underlying price and option quote are displayed for easy reference.
Next, select the Action.
Buy to Open– Select this when purchasing an option to create a new position. An example would be when buying a long put or call option.
Sell to Open Uncovered– Select this option if you are creating a new position by selling an option short. An example would be when writing a naked put option.
Sell to Open Covered– is used when creating a new position by selling an option short but is covered by its underlying stock or another option. An example would be selling a covered call.
Buy to Close– Select this when buying an option to close out an existing short option position.
Sell to Close– Select this when selling an existing long option position.
Next, enter the quantity. This represents the number of option contracts for the order.
Then, choose the price type. Market, Limit or Stop Limit. Please note Stop Market is not an available order type. This is to ensure the execution price does not drastically deviate from the pre-defined trigger price.
Finally, select the Good 'Til date, enter your Trading Password if prompted, and Preview the Order. Read the order confirmation details carefully before sending the order to market.
That's how you invest with options on the TD app, so you can trade when you want, where you want!
