Placing Options Stop Loss Based on Stock Price on ThinkorSwim

In today’s video we’ll learn how to place stop loss orders on options contracts. However, instead of using the option price to activate the stop. We’ll be using the underlying stock price itself to active the stop. Throughout the video we’ll go through several examples of how to place stops on options using the underlying stock price. The first one will be on a position we don’t yet own but placing a stop along with the opening trade. The second will be on a long option you already hold in the account. Then finally we’ll do it on a short option as well since I know that can be a bit confusing.