The Strategy Chain provides a structured display of real-time data for a selected symbol allowing you to analyze and trade single and multi-leg option strategies directly within the chain. Multi-leg option strategies in Advanced Dashboard are comprised of two legs that could be combined in two formats: equity + option or option + option.
Simply select one of the four quadrants in the market sentiment circle and Advanced Dashboard will populate all of the applicable single and multi-leg option strategies based on the underlying security. Please note that trading with multi-leg option strategies is currently only available for US option-eligible securities. In event of selecting a Canadian option-eligible symbol, only single leg option strategies will be populated. If the selected Canadian symbol is interlisted, you will be prompted to use its US equivalent in order to populate all applicable single and multi-leg option strategies.
To trade any selected strategy, simply click on the price value in the To Open/Close columns, and then click on the ‘Create Order’ button next to the Mid-Natural Price slider.
There are a total of 26 pre-defined option strategies that are grouped under four market directional views:
Bullish
- Long Call (Also available in Single Option Only mode)
- Short Put (Also available in Single Option Only mode)
- Bull Call Spread
- Bull Put Spread
- Diagonal Bull Call Spread
- Diagonal Bull Put Spread
- Call Back Spread
- Call Ratio Spread
Bearish
- Long Put (Also available in Single Option Only mode)
- Short Call (Also available in Single Option Only mode)
- Bear Call Spread
- Bear Put Spread
- Diagonal Bear Put Spread
- Diagonal Bear Call Spread
- Put Back Spread
- Put Ratio Spread
Neutral
- Covered Call (Buy/Write)
- Long Calendar Call Spread
- Long Calendar Put Spread
- Short Straddle
- Short Strangle
- Protective Put (Married Put)
Volatile
- Long Straddle
- Long Strangle
- Short Call Calendar Spread
- Short Put Calendar Spread
Disclaimer
The metrics and results are not reviewed or endorsed by TD Waterhouse Canada Inc., The Toronto-Dominion Bank or its subsidiaries.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read ‘Characteristics and Risks of Standardized Options’ before investing in options.