TastyTrade brokerage accounts present the TastyTrade desktop buying and selling platform for choices analytics.
Schwab brokerage accounts present the ThinkOrSwim buying and selling platform.
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Whereas there are web-based variations of each, the desktop apps have extra options and capabilities.
Whereas there are cellular apps for each, the desktop apps are most likely the device of selection.
Clearly, there are different concerns for selecting a selected brokerage apart from the standard of their buying and selling platforms.
For right this moment, we are going to take a look at the 2 desktop apps, TastyTrade and ThinkOrSwim.
To make use of TastyTrade or ThinkOrSwim, you’ll want to open a brokerage account with TastyTrade or Schwab, respectively.
At Schwab, you may open an account with no minimal steadiness.
That implies that when you enroll, you may obtain and use ThinkOrSwim with out depositing any cash.
Since you haven’t any cash within the account, you can’t actually commerce with it.
Nevertheless, you may pretend-trade with Schwab paper cash accounts.
At TastyTrade, there may be additionally no minimal steadiness to open.
Nevertheless, there’s a minimal steadiness requirement for utilizing margin, which is critical for choices buying and selling.
However TastyTrade has no paper cash account.
Some individuals are buying and selling choices with a brokerage that doesn’t present the choices analytical means to see the danger graph or the possibility Greeks.
For instance, they could be on IRA accounts at Constancy or Merrill Edge.
Whereas they will arrange a place in TastyTrade to see the choice analytics, they cannot save this place until they execute that place reside in a TastyTrade account.
This isn’t a sensible resolution for individuals who don’t wish to change brokerage or add cash to a second brokerage account.
Nevertheless, with Schwab, they will open a zero-balance Schwab account and enter their positions into the ThinkOrSwim paper buying and selling account, the place they will submit and save all their positions with out having actual cash.
They monitor their possibility Greeks and threat graphs there and return to their brokerage to enter the orders.
Let’s check out the interface of the 2 platforms.
Beginning with TastyTrade, we’ve entered a bull put credit score unfold on AMD, which is 33 days until expiration:
The quick leg is proven in crimson; you may drag it and simply transfer it to completely different strikes.
The lengthy leg is proven in inexperienced.
You’ll be able to see from the column “Delta” that the quick leg is on the 20-delta on the choice chain.
The 80-strike put possibility is on the 14-delta.
The blue accordion header exhibits the expiration to be Might 30, 2025, with “33d” until expiration.
It additionally exhibits the anticipated transfer to be “12.95”.
Which means the AMD worth is predicted to maneuver up or down about 13 factors at expiration.
The IVx of 61% proven is the implied volatility for that expiration cycle.
The vital metrics proven within the above screenshot are the choice Greeks:
Delta: 7.32
Theta: 1.4
Vega -2.0
Gamma: -0.44
To see the everyday bull put threat graph, it’s important to change the Commerce Mode from “Desk” to “Curve” and toggle on the “Evaluation” tab:
The blue dot on the horizontal axis is the AMD present worth.
The inexperienced shaded space is the revenue at expiration.
The crimson is the loss at expiration.
Let’s take a look at the identical bull put credit score unfold place in ThinkOrSwim.
Right here, we see the acquainted threat graph:
The small vertical hash on the x-axis is the place the present worth is, and the value slice on the present worth of 96.39 exhibits you the Greeks:
Delta: 7.28
Theta: 1.45
Vega: -1.97
Gamma: -0.44
You’ll be able to see that they’re corresponding to what TastyTrade is exhibiting.
Whereas the trendy drag-and-drop interface of TastyTrade is nifty, the choices analytical means of ThinkOrSwim is world-class and is tough to surpass.
Due to the massive variety of options and a gazillion issues to click on within the person interface, it would require a while to study.
Let me assist get you began by answering a couple of fundamental questions.
Free Lined Name Course
How do I get Into the Paper Buying and selling Account in ThinkOrSwim?
By deciding on paperMoney on the backside of the login dialog:
Can I See Tom Sosnoff’s Trades in TastyTrade?
Sure, and for another TastyTrade people as nicely.
How do I Add A number of Legs to an Choices Place in ThinkOrSwim?
Click on on the “ask” worth within the possibility chain to purchase. Click on on the “bid” worth to promote.
Upon getting one leg in place, maintain down the management key and click on for the second leg.
How Can I See the Liquidity of a Inventory in TastyTrade?
Open the right-side panel, kind within the ticker, possibility the quote particulars accordion:
The extra stars you see in “Liq,” the extra liquid the inventory is.
4 stars is the perfect liquidity, and one star is the worst.
How Do I Set the Default Contract Measurement for My Choices Place in ThinkOrSwim?
Click on Setup -> Software Settings -> Order defaults -> Choices -> Default amount of orders:
Can I see the Beta Weighted Deltas in TastyTrade?
Sure, it’s beta-weighted to SPY.
To get it to indicate, you’ll want to regulate the commerce show settings right here:
Can I See the Mixed Portfolio Greeks for all my Positions in ThinkOrSwim?
Sure.
You’ll be able to see the weighted Deltas to SPY or different property for those who examine the beta weighting in your checkbox.
I’m positive you’ve got a complete lot extra questions.
Now we have barely scratched the floor concerning the capabilities of those two choices buying and selling platforms.
Overlaying all of the options plus the intensive customization flexibilities of those platforms could be like writing a ebook.
We hope you loved this text on the TastyTrade and ThinkOrSwim platforms.
In case you have any questions, ship an electronic mail or depart a remark under.
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Disclaimer: The data above is for academic functions solely and shouldn’t be handled as funding recommendation. The technique introduced wouldn’t be appropriate for traders who are usually not aware of trade traded choices. Any readers on this technique ought to do their very own analysis and search recommendation from a licensed monetary adviser.
