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

H

highfiveman

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.
 
highfiveman said:
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.
More...

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.
 
https://interactivebrokers.com/en/index.php?f=592

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.
 
highfiveman said:
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.
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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.
 
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