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Duration: 3:22

Contributor: Interactive Brokers

Level: Intermediate

Learn how to access the TWS Layout Library Option Trading page and review the following option tools: Option Chains, Strategy Builder and the Implied Volatility Viewer.

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Study Notes:

The Layout Library contains multiple pre-configured screens that can be added to TWS. Let’s open the Layout Library by selecting the plus sign in the bottom left-hand corner, select browse, then click on Options in the left-hand menu.  These pre-configured layouts can be customized once added.

Let’s select the Option Trading layout. This layout contains several tools including Option Chains, Strategy Builder, and Implied Volatility Viewer.

On the top of the screen is the Option Chain.  Select a recently accessed ticker or one from your Watchlist.  Now you’ll see the option chain populate.  The columns can be configured by clicking on the gear icon on the top right of the screen and selecting Layout in the left menu.

For option specific columns look in the Option and Greek Groupings.

Some useful columns to show on the Option Chain are: Implied Vol %, Position, Option Open Interest, Delta, Gamma, Theta.  Click Ok when finished with your selections.

To enter a single option order simply hover over the bid or ask price and click. The option will populate the Order entry section from the option chain.

Directly below the Option Chain is TWS Strategy Builder. To turn on the Strategy Builder, click the toggle on the left-hand side. Once activated you can select a strategy from the right-hand drop-down menu. We’ll choose a straddle and will click on a leg to apply it. See the Strategy Builder and the Order Entry panels populate.  If you want to trade at a later time, you can always add the option or spread to your Watchlist.  And to start over just click Clear All Legs.

See our lesson on using the Strategy Builder for more details. Continuing to the bottom left-hand corner is the Implied Volatility Viewer. You can chart the volatility of each expiration through this tool as well as access the 3D volatility viewer.

Continuing toward the bottom center of the screen is the Order Entry and Activity panels so that you never have to leave the Option Trading Layout to submit or track your orders.

In the right-hand corner is the Monitor panel. You can view your Portfolio and access all the Watchlists you created in Mosaic. The tiles use the same color grouping so when a symbol is selected, you’ll see the other tiles update with the selected symbol.

The Option Trading Layout is extremely useful if part of your trading strategy includes options. It offers a user friendly and logically designed screen which includes all the essential tools to monitor and trade options and option combinations.

TWS Custom Layouts – User Guide

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Disclosure: Stock Symbols

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options” also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901 or click here. Multiple leg strategies, including spreads, will incur multiple commission charges.

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