A trailing stop loss order that only triggers at a certain price?

Discussion in 'Order Execution' started by highfiveman, May 19, 2020.

  1. Let's say I have Option A that I want to buy at $1.10 ($110). I want to either sell it for 100% gain at $2.20 at the minimum, or let it expire worthless. In order to do this, I would want a trailing stop order to automatically trigger once this option reaches a price of $2.20 (and have no stop loss until then), say we could put it at 5% below the current market price (of $2.20) to protect our potential loss after a 100% gain and let profits ride.

    How would I go about setting this up? Currently prefer/am on ThinkOrSwim, but if it can't do it, I'll go to any platform that can execute this type of order.
  2. comagnum


    Last edited: May 19, 2020
  3. smallfil


    Options have wide bid and ask prices so, a stop loss would trigger a market order and you would suffer huge losses. You can only use a mental stop loss then, use a limit order to exit your option. Stop losses work for stocks only for practical purposes.
  4. Thank you sir! I was thinking of coding out something for ThinkOrSwim, wherein a constant stream of tape/options chains and as soon as the mark/bid/ask hits X price, it'll send in a trail stop, but too much work there.
    comagnum likes this.
  5. Metamega



    Perhaps this what your looking for.

    Edit nvm. You want more of a conditional stop trigger.

    I’ve never dabbled with options much but I Would think you’d be better off with an alert for price and manually working the order. Seems most options aren’t super liquid and leaving automatic stops just a recipe for let down.
  6. smallfil


    You are welcome. Market makers also, tend to move the bid and ask prices as wide as they can at times when your stock has fallen quite a bit and will nickle and dime you given half a chance.
    Stop losses work well though with stocks.