How to place a vertical spread order with TD Ameritrade?

Discussion in 'Options' started by silent_tunes, Sep 17, 2010.

  1. Does anyone know how to place a vertical spread order on TDA? It can be placed as two separate orders and the commissions are not very different ($10 fixed plus $0.75 per contract). I am looking for an order type where both legs are executed ONLY if I get my target price (bid on the long, ask on the short) on both legs. Also, the spread will enable better use of total buying power than just the long or short leg alone. I hope the question is clear !!
     
  2. MartinGS

    MartinGS

    After logging in to TDA, download Thinkorswim and don't look back. It will do more than you can ever dream of.
     
  3. If you trade more than once a month, do yourself a favor and find a better commission rate. Trading is hard enough to start with - that $10 base fee really adds insult to injury.
     
  4. Anybody who pays those rates ought to spend a little time shopping around. Also, TOS will negotiate with frequent traders, but they will still be overpriced.
     
  5. Click on the "Trade" tab.
    Click on the "Options" tab.
    Click on the "Spread" tab.
    Click on the type of spread you want, vertical call or put, or calender call or put.
    Fill in the blanks for underlying symbol, type of option, strike price and number of contracts.
    Then select "Net Credit", "Net Debit" or "Market".
    From reading your post, do not select "Market", or you'll get filled at a price you may not like.
    Enter the amount you want in increments of $.05.
    Click on "Review Order".
    Review and click on "Change Order" or "Submit Order".
    Done
     
  6. Edited for a few mistakes...

    Click on the "Trade" tab.
    Click on the "Options" tab.
    Click on the "Spread" tab.
    Click on the type of spread you want, vertical call or put, or calender call or put.
    Select "Buy To Open", "Sell To Open, "Buy To Close" or "Sell To Close".
    Enter the number of contracts.
    Click on "Select Leg" and another screen will pop up with all of the options.
    Click on the option you want and select "Buy" or "Sell"
    Repeat for the next leg.
    Select order type, "Limit", "Market", "Stop Market" or "Stop Limit"
    Then select "Net Credit", "Net Debit" or "Market".
    From reading your post, do not select "Market", or you'll get filled at a price you may not like.
    Enter the amount you want in increments of $.05.
    Click on "Review Order".
    Review and click on "Change Order" or "Submit Order".
    Done
     
  7. rew

    rew

    I agree with surfer25 and spindr0. TDAmerica has about the worst option commissions you'll find. Shop around. Look at TOS, IB, and other brokers.
     
  8. Pardon my redundancy but the best way to trade with TD is to click the TRANSFER ACCOUNT button.
    :)
     
  9. besides teh commissions prices there are some significant technical problems with these platforms. first, they dont talk to each other, the scanner in TOS is lightweight so if you use TDA you have to go through hoops to get the screener results into TOS.

    most important though is the tos trading. there are some trades they publish, stock collar as an example, that will not fully execute and you may be left with only a covered stock either put or call.

    second is the analyzer, while you can setup your trade there and go through the confirm process they will not aways execute and you again can be in the trade with not exactly what you thought.