{"id":175679,"date":"2023-01-12T13:59:00","date_gmt":"2023-01-12T18:59:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/tws-optiontrader\/"},"modified":"2023-04-27T11:45:39","modified_gmt":"2023-04-27T15:45:39","slug":"tws-optiontrader-2","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/tws-optiontrader-2\/","title":{"rendered":"TWS OptionTrader"},"content":{"rendered":"\n<p> <\/p>\n\n\n\n<p>The Interactive Brokers (IBKR) OptionTrader is a robust tool on the Trader Workstation (TWS) that allows the investor to trade single and multi-leg options. The OptionTrader allows the investor to load multiple option chains by adding additional tabs and offers the investor several data points and uses including the ability to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Display implied volatility by contract,<\/li>\n\n\n\n<li>Calculate fair value of options contracts<\/li>\n\n\n\n<li>View the options Greeks, and<\/li>\n\n\n\n<li>See open interest.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-access-optiontrader-in-classic-tws\"><strong>How to access OptionTrader in Classic TWS?<\/strong><\/h3>\n\n\n\n<p>To access the Interactive Brokers (IBKR) OptionTrader in Classic TWS, the investor clicks on <em>Trading Tools<\/em> in the top left corner of the screen, scroll down to the Option\/Events section, and click on <em>OptionTrader<\/em>.<\/p>\n\n\n\n<p>The investor may also add the OptionTrader button to the toolbar by clicking on <em>Configure<\/em>, scrolling to <em>Add More Buttons<\/em>, and selecting the <em>OptionTrader<\/em> button. Once added, the investor can click on the OptionTrader button to access the tool.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-access-optiontrader-in-mosaic\"><strong>How to access OptionTrader in Mosaic?<\/strong><\/h3>\n\n\n\n<p>To access the Interactive Brokers (IBKR) OptionTrader in Mosaic, the investor clicks on the <em>New Window<\/em> button, scrolls down to the <em>Option Tools<\/em> area, and clicks on <em>OptionTrader<\/em> and a new window with the OptionTrader will appear.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-different-areas-of-the-ibkr-optiontrader\"><strong>What are the different areas of the IBKR OptionTrader?<\/strong><\/h3>\n\n\n\n<p>The IBKR OptionTrader consists of a tool bar, toggle set, and five panels:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Quote panel,<\/li>\n\n\n\n<li>The Statistics panel,<\/li>\n\n\n\n<li>The Buttons panel,<\/li>\n\n\n\n<li>The Trading panel, and<\/li>\n\n\n\n<li>The Option Chain.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"1000\" height=\"558\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-0.jpg\" alt=\"\" class=\"wp-image-188721 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-0.jpg 1000w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-0-700x391.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-0-300x167.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-0-768x429.jpg 768w\" data-sizes=\"(max-width: 1000px) 100vw, 1000px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1000px; aspect-ratio: 1000\/558;\" \/><\/figure>\n<\/div>\n\n\n<p>As is the case with most of the TWS tools, the OptionTrader settings in each panel can be configured by the investor to define columns, buttons, hotkeys, order presets, and other items.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-on-the-optiontrader-toolbar\"><strong>What is on the OptionTrader toolbar?<\/strong><\/h3>\n\n\n\n<p>At the top of the OptionTrader is the toolbar. Using the tool bar an investor can easily and quickly<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add additional tabs to run multiple Option Chains,<\/li>\n\n\n\n<li>Cancel all orders on a tab,<\/li>\n\n\n\n<li>Clear the log,<\/li>\n\n\n\n<li>Show the option pricing in volatility terms,<\/li>\n\n\n\n<li>Bring up the TWS Combo Trader by clicking on the Option Spreads,<\/li>\n\n\n\n<li>Bring up Risk Navigator, Option Analytics, or the Model Navigator by clicking on Analytics,<\/li>\n\n\n\n<li>Go to the IBKR Trader Insight commentary, and<\/li>\n\n\n\n<li>Configure the OptionTrader.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-where-are-the-tws-optiontrader-toggle-buttons-located\"><strong>Where are the TWS OptionTrader toggle buttons located?<\/strong><\/h3>\n\n\n\n<p>The toggle set is in the upper right-hand corner of the IBKR TWS Option Trader. Each toggle allows the investor to display or hide features. Click \u201cT\u201d for the tool bar, \u201cB\u201d for the Buttons panel, and \u201cS\u201d for the Statistics panel.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-does-the-tws-optiontrader-quote-panel-display\"><strong>What does the TWS OptionTrader Quote panel display?<\/strong><\/h3>\n\n\n\n<p>The TWS OptionTrader Quote panel displays the underlying asset. Like many items in the Interactive Brokers\u2019 Trader Workstation, the investor can edit the data columns by clicking on the <em>Configure<\/em> icon in the top right-hand corner of the panel.<\/p>\n\n\n\n<p>An investor can create orders in the underlying from the Quote panel, clicking on the bid creates a sell order and clicking on the offer creates a buy order. Once created, the orders will be displayed in the Orders tab of the Trading panel.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1100\" height=\"345\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-1100x345.png\" alt=\"\" class=\"wp-image-188715 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-1100x345.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-700x220.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-300x94.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-768x241.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1-1536x482.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-1.png 2048w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/345;\" \/><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-displayed-in-the-tws-optiontrader-statistics-panel\"><strong>What is displayed in the TWS OptionTrader Statistics panel?<\/strong><\/h3>\n\n\n\n<p>Directly below the Quote panel is the Statistics panel. The Statistics panel shows relevant option related data such as option volume, put\/call volume, option volume change percentage, historical volatility information, and implied volatility information. The data columns can be edited by clicking on the <em>Configure<\/em> icon in the upper right-hand corner of the panel.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-add-custom-action-buttons-to-the-tws-optiontrader\"><strong>How to add custom action buttons to the TWS OptionTrader?<\/strong><\/h3>\n\n\n\n<p>An investor can add action buttons to the IBKR OptionTrader that allow them to quickly create orders, bring up another Trader Workstation tool, or cancel orders. To create new buttons or edit existing ones, the investor should click the <em>Edit<\/em> icon in the top right-hand side of the panel. Once the configure area appears, the investor can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create a new button,<\/li>\n\n\n\n<li>Edit an existing one,<\/li>\n\n\n\n<li>Remove an existing one,<\/li>\n\n\n\n<li>Change the location of a button, or<\/li>\n\n\n\n<li>Duplicate a button.<\/li>\n<\/ul>\n\n\n\n<p>Certain buttons can be armed for instantaneous transmission and will be identified by an asterisk next to the button name when armed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-tabs-in-the-optiontrader-trading-panel\"><strong>What are the tabs in the OptionTrader Trading panel?<\/strong><\/h3>\n\n\n\n<p>Continuing downward on the OptionTrader is the Trading panel, which consist of five tabs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Order tab<\/strong> displays open stock and option orders created in the OptionTrader for the underlying.<\/li>\n\n\n\n<li>The <strong>Activity Log<\/strong> <strong>tab<\/strong> displays actions taken on the OptionTrader such as buys, sells, and cancels.<\/li>\n\n\n\n<li>The <strong>Trades tab<\/strong> displays completed trades that originated from the OptionTrader.<\/li>\n\n\n\n<li>The <strong>Portfolio tab<\/strong> displays the entire stock and option position for the underlying in the OptionTrader.<\/li>\n\n\n\n<li>The <strong>Strategy Builder tab<\/strong> which allows the investor to create multi-leg complex spread orders without leaving the OptionTrader.<\/li>\n<\/ul>\n\n\n\n<p>An investor can choose a strategy from the drop-down menu and begin selecting strikes. Once selected, the investor can change the ratio, expiration, strike, add a stock order, and make delta neutral if they choose to. When ready to send the order, they click <em>Transmit<\/em>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1100\" height=\"390\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-1100x390.png\" alt=\"\" class=\"wp-image-188717 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-1100x390.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-700x248.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-300x106.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-768x272.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2-1536x545.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-2.png 2048w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/390;\" \/><\/figure>\n<\/div>\n\n\n<p>The investor can click on the <em>Configure<\/em> icon in the upper right-hand corner to add and remove the data columns in the Order, Trade, Portfolio, and Strategy Builder tabs.<\/p>\n\n\n\n<p>For more information on the IBKR Options Strategy Builder, please see the lesson in Traders Academy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-use-the-ibkr-option-chain-in-optiontrader\"><strong>How to use the IBKR Option Chain in OptionTrader?<\/strong><\/h3>\n\n\n\n<p>The OptionTrader Option Chain will automatically populate with the strikes of the underlying selected. The investor can choose between a list or tabbed view. In list view mode, the investor can scroll downward to see each expiration, while tab view will show one expiration per tab. To change the expirations shown, the investor clicks on more and chooses an expiration. That expiration will be shown along with the two previous ones and the following one.<\/p>\n\n\n\n<p>The Option Chain can be adjusted to show either calls &amp; puts, just calls, or just puts as well as the number of strikes to display, exchange, and trading class.<\/p>\n\n\n\n<p>The <em>Load My Chains<\/em> feature is unique to the OptionTrader Option Chain and when clicked, it will bring up the option chains for existing option positions in the underlying in the investor\u2019s portfolio.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-is-an-option-order-submitted-in-the-tws-optiontrader\"><strong>How is an option order submitted in the TWS OptionTrader? &nbsp;<\/strong><\/h3>\n\n\n\n<p>To create an option order in the IBKR OptionTrader, the investor selects the expiration and hovers the mouse over either the Bid or Ask in the strike they are interested in. Notice that the background turns blue when the mouse is hovered over the Ask indicating a Buy and if hovered over the Bid the background turns red indicating a Sell.<\/p>\n\n\n\n<p>To create an order, the investor should click on the appropriate side and the Order tab will populate. The size, Time in Force, Order Type, and price can be adjusted. When the investor is ready to send the order, they click on the \u201cT\u201d button in the status column. An order confirmation box will appear, and they can click <em>Transmit<\/em>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1100\" height=\"276\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-1100x276.png\" alt=\"\" class=\"wp-image-188714 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-1100x276.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-700x176.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-300x75.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-768x193.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3-1536x386.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/OptionTrader-3.png 2048w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/276;\" \/><\/figure>\n<\/div>\n\n\n<p>The Interactive Brokers (IBKR) OptionTrader provides the investor with important data and tools useful when trading options. The OptionTrader allows for multiple tabs to be open at the same time so that the investor can monitor several different option chains.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Interactive Brokers (IBKR) OptionTrader is a robust tool on the Trader Workstation (TWS) that allows the investor to trade single and multi-leg options. The screen consists of a tool bar, toggle set, and five panels.<\/p>\n","protected":false},"author":850,"featured_media":176702,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[13576],"traders-academy":[13125,13128,13119,13129,13132],"class_list":{"0":"post-175679","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-options","10":"traders-academy-finance-courses","11":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives | Traders&#039; Academy | 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