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 in all probability the device of alternative.
Clearly, there are different issues for selecting a selected brokerage aside from the standard of their buying and selling platforms.
For at present, we’ll take a look at the 2 desktop apps, TastyTrade and ThinkOrSwim.
To make use of TastyTrade or ThinkOrSwim, you want to open a brokerage account with TastyTrade or Schwab, respectively.
At Schwab, you’ll be able to open an account with no minimal steadiness.
That implies that when you enroll, you’ll be able to obtain and use ThinkOrSwim with out depositing any cash.
Since you don’t have any cash within the account, you cannot actually commerce with it.
Nonetheless, you’ll be able to pretend-trade with Schwab paper cash accounts.
At TastyTrade, there’s additionally no minimal steadiness to open.
Nonetheless, 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 skill to see the chance graph or the possibility Greeks.
For instance, they might be on IRA accounts at Constancy or Merrill Edge.
Whereas they’ll arrange a place in TastyTrade to see the choice analytics, they can’t save this place until they execute that place stay in a TastyTrade account.
This isn’t a sensible resolution for individuals who don’t need to change brokerage or add cash to a second brokerage account.
Nonetheless, with Schwab, they’ll open a zero-balance Schwab account and enter their positions into the ThinkOrSwim paper buying and selling account, the place they’ll 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’ll be able to drag it and simply transfer it to totally 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 reveals the expiration to be Might 30, 2025, with “33d” until expiration.
It additionally reveals the anticipated transfer to be “12.95”.
Meaning the AMD value 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 necessary 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 standard bull put threat graph, it’s a must 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 value.
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 value is, and the value slice on the present value of 96.39 reveals you the Greeks:
Delta: 7.28
Theta: 1.45
Vega: -1.97
Gamma: -0.44
You’ll be able to see that they’re akin to what TastyTrade is exhibiting.
Whereas the trendy drag-and-drop interface of TastyTrade is nifty, the choices analytical skill 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 is going to require a while to be taught.
Let me assist get you began by answering a couple of fundamental questions.
Free Coated 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 of us as effectively.
How do I Add A number of Legs to an Choices Place in ThinkOrSwim?
Click on on the “ask” value within the possibility chain to purchase. Click on on the “bid” value to promote.
After 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 one of the best liquidity, and one star is the worst.
How Do I Set the Default Contract Dimension for My Choices Place in ThinkOrSwim?
Click on Setup -> Utility 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 want to alter 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 belongings if you happen to examine the beta weighting in your checkbox.
I’m certain you have 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 can be like writing a guide.
We hope you loved this text on the TastyTrade and ThinkOrSwim platforms.
You probably have any questions, ship an e-mail or go away a remark beneath.
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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 buyers who usually are not aware of change traded choices. Any readers on this technique ought to do their very own analysis and search recommendation from a licensed monetary adviser.
