Fidelity | Options in Active Trader Pro - First Look

In this video, I demonstrate the features specifically for options trading that are available in Active Trader Pro.
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Topics include:
1. Options Trade Builder
2. Probability and Profit & Loss Calculators
3. Strategy Ideas
4. $0 Commission Option trades ($0.65 per contract fee).
5. Cash Account Options Trades and Settlement time (T+1)
6. Directed Trade Options & Price Improvements
RESOURCES & LINKS
HONEST REVIEW FIDELITY | TRADING AND INVESTING
• Honest Review Fidelity...
FIDELITY | FAST TRADES - ENTRY AND EXECUTION
• Fidelity | Fast Trades...
FIDELITY | HOW TO PLACE STOP ORDERS - EACH STOP ORDER EXPLAINED
• Fidelity | How to Plac...
FIDELITY | TRADE ARMOR - TUTORIAL & REVIEW
• Fidelity | Trade Armor...

[@Robls501510]

Thanks, Kent. Learned a few new things. I have been trading Covered Calls against IRA positions, along with some Cash Secured Puts for additional income.

[@brian17411]

Just wanted to say you make by far the best videos for this platform. I am just getting used to ATP and these have helped so much. Couple things that started to get it feeling normal was the link to gray to sync the open windows, and changing the color scheme away from the blinding white. This seems like a winning platform all around, mobile isn't bad either.

[@ThinkTradeProfit]

Hi Brian, Thanks for the support and positive feedback! Sounds like you've had a good start. I'll throw some recommendations out: experiment and play arounnd with layouts, you can save as many as you want (they're stored in Fidelity's cloud, not locally. Unfortunately, they cannot be shared.), "float" the windows and spread your layouts across multiple monitiors, save your charts and figure out how to name and organize them so that all your drawings, trendlines, etc. accumulate over time. Obviously, the stock or option shortcuts are huge (see the Fast Entry and Execution video if you haven't), start reviewing price improvements that you receive from Fidelity (there is a video on that too) and change your style accordingly depending on the stocks you trade (e.q. buy on bid with limit, sell at market for exit). Good Luck!

[@retirefire2700]

Thank you, I was ready to bail on ATP but your explanations have kept me interested in staying with it. And I agree, as an options scalper, the executions are quick.

[@ThinkTradeProfit]

Hi Jerry, I'm glad it was helpful, and I appreciate the support. Good Luck!

[@cooljey86]

Thanks man, I was trying to figure out some stuff as I'm new to Active Trader Pro, this video helped. Would like to see more on how you trade using these tools and the things you look for diving into a trade.

[@walkerluke4470]

Excellent video! Awesome presentation! Thank you for making this video. Really a big help. I'm fairly new to the Active Trader Pro platform and this has given me an idea of where to start. Thanks again!

[@ThinkTradeProfit]

Thanks for the support! I'm glad it was helpful.

[@simba9225]

Thanks as always. I am new to options trading and thanks to your explanation I learn something new.

[@ThinkTradeProfit]

Hi Simba, I am glad it was helpful. If you want to examine all options strategies, this is a pretty good reference - www.fidelity.com/learning-center/investment-products/options/options-strategy-guide/overview Good Luck!

[@johnstrong5402]

Terrific videos -- thanks for taking the time to put these together.

[@ThinkTradeProfit]

Hi John, I'm glad they are helpful. Thanks for the support!

[@abhiramkottapalli5883]

Hey Kent! I have watched most of your videos and they have been very helpful for new traders. You aren't trying to constantly promote a program and you really go to the fundamentals of trading. I would love to know more about you. Would it be possible for you to make a video in the future about how you started off trading and your prior experience with various markets? Thanks!

[@latinobacon]

Thanks Kent I'm coming back to Fidelity switching from WeBull & this video really helped me!

[@ThinkTradeProfit]

Hi Zephyr, I'm glad it was helpful, and thanks for the support!

[@txchick1846]

thank you, reviewing your video's has really helped me learn active trader pro. Your Awesome.

[@ThinkTradeProfit]

Hi Donnamarie, I'm glad they are helpful, and thanks for the positive feedback. Feel free to throw questions in the video Comments if need. I try to answer all of them in time. Good Luck!

[@IIImykidtvIII]

Kent can you make a video on the mechanics of short selling a stock? I’ve never seen one being executed. I use active trader pro as well.

[@satvikvala]

New Fidelity user, will check out all your videos !!

[@ThinkTradeProfit]

Hi Satvik, Welcome to the channel! I would recommend you start with (Day Trading Screen Setup) kzbin.info/www/bejne/b6HCgYWne82UnpI to help you get the most out of Fidelity Active Trader Pro. Good Luck!

[@tinycreek]

Thanks you so much, this is great. I started trading option a week ago using Fidelity, it is very fast, much better than Thinkorswim. I am new on options, I so set a button with stop loss. I did get stop out for some times, but It is under control.

[@ThinkTradeProfit]

Thanks Tinycreek! I haven't tried Thinkorswim options yet, but it is good to hear that Fidelity is better.

[@skhan385]

you setup a stop loss shortcut? can you elaborate

[@billsorensen6873]

Thank you. Very well presented. I learned some new features that I can explore tomorrow . Happy profits 📈

[@ThinkTradeProfit]

Thanks Bill!

[@billsorensen6873]

@@ThinkTradeProfit just started options this week on a TQQQ strategy I've been working with regular stock buys and sells. Increased profits by 6k this week. You info makes it easier to work it. Ty buddy

[@ThinkTradeProfit]

@@billsorensen6873 That's huge! Great job Bill.

[@lsabik88]

Thank you! Good information - especially regarding Execution (compared with other firms).

[@ThinkTradeProfit]

Hi lsabik88 , Thanks for visiting the channel. I appreciate the support!

[@rg24329]

Fantastic overview of the platform since I'm learning online and the platform is Think Or Swim with much different displays. I'd like to know if you'd be able to demonstrate the Greeks in the ATP with an overview of them . Other than that great demo!

[@utilitymaximizer9026]

Can you do a video showing how to manage a somewhat complex option strategy? For example, once you open a iron condor with 4 legs, how you can set it up such that if the buy back price for the whole package reaches either a upper (max loss you are willing to take) or lower threshold (minimum profit you are happy to settle with), the system executes the buy back to close.

[@Sacc-sg4uf]

Great content Ken, I am having issues eliminating the preview button in the directed trade menu. You have one less click with place order only. Thoughts on how to change,

[@ThinkTradeProfit]

Hi Sac1334 c, Go to Settings > Trade > General tab and select the 'Skip Preview' checkbox. imgur.com/Fy9CgBn

[@user-ms6sx6ic5z]

options on ATP work really well.., the multi-leg option trade window is especially great for execution and slippage reduction

[@DaUloi]

I'm a bit frustrated with it. I've entered a calendar spread which has a positive P/L. But I see no way to determine that without doing the math myself. Am I missing something?

[@Chris-xf8ek]

Hey Kent, as a Fidelity ATP fan it's always good to review your videos. I've tried all the other platforms and always end up back w/Fidelity. 2nd time this year I have watched this one. I really want to use the directed trade and trade armor windows for options when I watch you do it. I said that last time and I still trade from the option chain. I love seeing the OI and histogram and feel comfortable on that window but need to try the others. Happy Memorial Day! If you're ever in DFW give us a holler!

[@ThinkTradeProfit]

Hi Chris, Thanks for the continued support. If the Option Chain works for you, stick with it. 😊 Best Wishes and Good Luck!

[@Chris-xf8ek]

@@ThinkTradeProfit I have watched that T&S window that you like and watched it and watched it and I don't understand what I am supposed to gain from it that I can't see from the premium price, OI, vol on the option chain.....

[@Chris-xf8ek]

@@ThinkTradeProfit I'm afraid they are going to quit supporting ATP. They keep updating the trading dashboard/"option research experience" on the website but don't do much for ATP. I just wish they would make the charting decent where we don't have to pay for TV.

[@robcean]

Great video. Thanks!

[@ThinkTradeProfit]

Hi Robert, Thanks for the support!

[@pete5498]

Well done, thanks for sharing your opinion regarding ATP! I'm new to trading and am focusing on covered calls. I'll have to figure out how to drill down to the screen where you show how to display commissions & price improvements later on. I've been looking around for a Fidelity forum to post some questions or gain more knowledge but haven't found anything good yet. I'm trying to figure out a way in the stock screener so I can screen amongst stocks\calls that have a weekly expiration period (option chain) rather than monthly. Fidelity wasn't able to help me figure out a way of doing this.

[@ThinkTradeProfit]

Hi Pete, The official Fidelity customer care reddit isn't too bad. I answered questions there for a while. www.reddit.com/r/fidelityinvestments/ You could build a screener manually within 'Quotes & Watch List' > Filters using www.cboe.com/us/options/symboldir/weeklys_options/ and selecting 'Custom' in the dropdown. This directs you to the web within Active Trader Pro (but you can also login into the Fidelity web app and build there). It'll be a little work once, but you get to pick all the scanning critera that you prefer. imgur.com/rgLjg59 imgur.com/SgNdpZe I hope that helps. Good Luck!

[@Rvijay160883]

Thank you very much for this video. Is Fidelity allow sharing layouts like TD? it would be great if you can.

[@ThinkTradeProfit]

Hi Vijay, I wish we could, but it's not possible. The layouts are not stored locally (on our PC's). They are stored in Fidelity's cloud somewhere. We do not have access to them.

[@thedogpack]

Hi, I have been enjoying your videos. Maybe I missed it in the video. But, can I place a buy order on an option to trigger when the underlying hits a certain price. if its in there just give me the time its at. But I cant seem to do that in active trader pro

[@ThinkTradeProfit]

Hi thedogpack, Yes, there is a way create an order like that. Go to Trade & Orders > Conditional Trade from the main navigation menu. When the Conditional Trade windows appears, you'll need the Options Symbol for the calls or puts that you hope to buy when the underlying stock gets to a certain price. imgur.com/b9PwN6i In this example, I setup the Conditional Order with 'If AAPL stock last trade price hits 170 or higher, then execute a Market Order to Buy 5 Contracts of the March 25 160 Calls. Conditional Orders are very versatile. You can set the trigger to be an index, another stock, or option as the trigger for a different order. I hope that helps. Good Luck!

[@scotthenderson4376]

Just starting out and this helped greatly. Would love to learn more.

[@ThinkTradeProfit]

Hi Scott, Thanks for supporting the channel. Feel free to ask questions in the the 'Comments' sections of videos. I try to answer all of them in time. Good Luck!

[@ajnarozo11]

Another great video, thank you. Do you have one where you actually show how you place your SL right after you buy the option contract? That would be useful. Or if you could show how to place an option order and place the stop loss at the same time, maybe in trade armor? Thank you.

[@trendaddict617]

Great video sir, I wanted to ask you two questions: 1. Would you do a video presenting your opinion on what are the most important indicators for you, is RV the most important one? 2. Would you do a video on your actual computer setup and specs. Currently trying to figure out if it’s best to build my own or just buy one

[@ThinkTradeProfit]

Hi AcebianPR 007 , I want to try to give you some answers so you don't have to wait for videos. 1. I don't use many indicators on charts. I use the 50 EMA as a general trend indicator. I think it's a personal choice. I've just gotten used to it over time. I user ATR(14) to help show volatility and how wide my stops should be at that time. I've just started using Williams%R (but I don't recommend for most people) to keep me more active in looking for quick scalp opportunities. VWAP is important, but we don't have that on Fidelity charts, so I use a free account of tradingview.com in a browser on the side with VWAP on a chart. I do watch SPY on a its own chart throughout the day to see the general buying and selling of the overall market, but this is because I trade a lot of large caps. 2. When I started trading part-time, I used an older Dell i5 laptop with 8GB and integrated graphics and would use TeamViewer to remote into it during lunchtime at work. It worked just fine as long as you didn't have many other programs running at the same time as Active Trader Pro. I bought this in February - Lenovo IdeaCentre T540 with NVIDIA GTX 1660 Ti www.lenovo.com/us/en/desktops-and-all-in-ones/ideacentre/500-series/IdeaCentre-T540-15ICB-G/p/90LW0000US Whether building or buying, I'd recommend at least an i5 or Ryzen 5 processor with 16GB and some video card. Fidelity's Active Trader Pro isn't really CPU intensive, but I run a few other programs while trading now. Multiple browser windows (Chrome is a memory hog, I switched to Torch for when I'm trading), Slack for talking to friends, the free trade-ideas.com desktop app, and OBS Studio which I used to record my desktop for videos). It sounds like you are computer savy. You could build to save money, but most trading software on its own doesn't require crazy computer specs. More important is your internet connection/WiFi, having at least two monitors, and having enough RAM to run whatever other programs you want while trading.

[@skhan385]

hey! Thanks for making the video on options. I place my orders through the options chain, then sell and close through my positions screen, its been working for me, ill try to see if your setup is more convenient. As far as strategies, what filters would you recommend for finding the best stock options to trade for the day? (im a novice)

[@skhan385]

also, ive talked to fidelity to make ATP more user friendly for day traders, like the one click purchases from charts etc, they said they are working on it!

[@ThinkTradeProfit]

Hey skhan385, I think the 'Most Actives' is a good place to start where they have a % change of +/-3% or more. You can check this early in the morning (it won't show the premarket volume) but it will be a true ranking and you can see it if you look at the stocks. With a gap up or gap down and good volume, the underlying stock has a good chance of moving well and the options should have good volume for the day also. imgur.com/EV2P3sH

[@skhan385]

@@ThinkTradeProfit thank you for adding that pic, it helped. I will look at that today and see how it goes.

[@donkndave7811]

I noticed you have VWAP on your "To watch" list. Is that not available in the standard ATP setup? If not, how do I get it? The other online scalpers use VWOP to trade and have it in their market graph. THANKS!!! You videos have been instrumental in my investing education.

[@ThinkTradeProfit]

Hi DonknDave, Many people have been asking Fidelity to add VWAP to Active Trader Pro, but it hasn't happened yet. I use a free account at www.tradingview.com/ with their chart on the side in a browser with their VWAP indicator. Basically, checking to see if wer are above, below, or maybe bouncing off of VWAP. imgur.com/bJU327I

[@marcusharvey2296]

I've been enjoying using Fidelity so far. Do you know if there is an option to set a limit price automatically between the bid and the ask? I see the option to choose "below the ask by $" but of course each stock is different. Some have wider spreads then others and I didn't know if like Robinhood there would be a default option to somewhere in the middle.

[@ThinkTradeProfit]

Hi Marcus, Unfortunately, no. That specific configuration is not available. The best you could do is an 'Above the Ask' price setting, but like you mentioned, every stock has varying spreads. I suggest a different approach to take advantage of the Price Improvements at Fidelity and to extract more money out of every trade. For me, I like to put in my entry order at the Bid or Offer (Buy on the bid with Limit order, or Short Sell on the offer). So my entry (if executed) does not pay the spread. For my exits, I use market orders and 70-80% with Fidelity, I get filled between the spread. Their Price Improvements are very good on markets, less frequent on Limit Orders. I explore this more here, in my Price Improvement video - kzbin.info/www/bejne/j5ewkIKNbLmGoas . I show where can you can see the Price Improvements and where you can track your totals for the year to date. I hope that helps. Good Luck!

[@marcusharvey2296]

@@ThinkTradeProfit Awesome! Thanks for the advice. I've been into scalping options with us being at all time highs. I will start buying the bid. Hopefully I dont have any issues getting filled quickly. Thank you again.

[@loreall.2461]

How about a video on the options columns? How can we use intrinsic and extrinsic value along with the bid size and ask size to better understand pricing points. I’ve just begun to explore this to try to narrow down more reasonable pricing on some of my options. How do you use this data to open and close positions?

[@japheth1100]

This guy is amazing no Bs , just a lot of information... is there a way to hide your account number ?

[@ThinkTradeProfit]

Hi Japheth, Thanks for the positive feedback. Great question. Unfortunately, no. There is not a feature to hide your account number. I do some minor editing for my videos to hide it (even though my accounts are pretty secure and Fidelity can inform you of anything going on in your accounts by various methods of communication). There are only a couple windows where it might show, and depending on your setup you, can layer windows over the critical spots if you are thinking about making some videos.

[@stephengibson4876]

Hi Kent. Great video for me, a new options trader. How can I get Fidelity to approve Level 3 so that I can sell Bull Put Spreads on SPY? I only have Level 2 now. Thanks. Steve Gibson, Atlanta, GA

[@ThinkTradeProfit]

Hi Steve, Fidelity is one of the more conservative brokers for granting the higer tiers of option trading. They've faced some regulatory scrutiny in the past (by making it too easy). www.ft.com/content/818a7391-8ac6-4629-ab6b-99fbdf905bba I would guess you need at least $25,000-$50,000 in your account, and good income and net worth numbers with high risk tolerance. You can re-apply often. I have heard of people re-applying monthly, but I wouldn't suggest that often. I would be as active as you possibly can with option trades at your current level 2. With that activity and no issues, re-apply in two months, with positive answers to all the questions they ask. I hope that helps. Good Luck!

[@marcusharvey2296]

Great Video. Do you know if there is a way to have the "cash" account be the default instead of margin? This slows my scalping down a bit. Thanks.

[@ThinkTradeProfit]

Hi Marcus, I can't test this because all my accounts have margin enabled, but I have an idea. Is your scalping account a 'Cash' account? Have you checked the settings in Settings > Trade - imgur.com/b8Wp6Tl if you set the Default account and change the Default Trade Ticket to Directed Trade and select 'No' for Always display Trade Type dropdown. It might solve your problem. It is worth a shot, but you may have to wait until Monday morning.

[@marcusharvey2296]

@@ThinkTradeProfit Thanks for the advice. I tried that and unfortunately it did not work. I spoke with Fidelity and they said that it will always be a default because of the ability to do spreads. Seems pretty odd, seeing as though almost everything else is extremely customizable. Thanks again.

[@timetorelaxfocus9642]

In directed trade, there are tabs called Trail Amount and Trailing Value. Will either of these show the gain / loss of my last trade on the stock I am currently trading? I would like to show this when making day trades if it's possible in Fidelity.

[@ThinkTradeProfit]

I think you are referring to the values you enter when creating Stop Order shortcuts in Directed Trade. These have nothing to do with with showing gain/loss in trades. There are different columns to add to the Positions window and Closed positions window, but these only show the gain/loss on the current open position (current trade you are in) and Closed Positions total for the day. Maybe I mentioned them before, but they are 'Unadj Short-Term G/L'. There is nothing that only shows the gain or loss on your most recent trade that has been been closed. imgur.com/tpJUwKX

[@timetorelaxfocus9642]

@@ThinkTradeProfit Hmm, I didn't find the setting, but I will look look into this again later, thanks!

[@timetorelaxfocus9642]

I missed out on important new of a stock in ATP, is there a better place to get the stock news? Thanks

[@ThinkTradeProfit]

This is a tough one. I don't have a good answer. I have not yet used a paid news service. When I miss things, it usually comes from different sources, Twitter, some news outlet, CNBC (rarely), etc. I use FINVIZ finviz.com/ to check non-breaking news for the stocks I trade.

[@Chris-xf8ek]

Kent, have you ever noticed how handy the "Positions" Page is for monitoring/trading in ATP? The Real Time Analytics column and premium range columns are a nice way to see good info on multiple positions all laid out nice and easy to see. Just thought I'd mention that. I find myself trading from that page to close or add-to alot.

[@mikek.9980]

Hi, do you know if today they have free commissions on option trades (beside regulatory fees)?

[@ThinkTradeProfit]

Hi Mike, Yes, they do! Just $0.65 per contract to cover fees with commission-free trades. Good Luck!

[@choivong9713]

The stock chart platform you using, is that provide by Fidelity?

[@ThinkTradeProfit]

Hi Choi, Yes, it is Fidelity Active Trader Pro. It is free to download and use. bit.ly/3pD0nBw

Very informative and helpful. Hope you figured out that SHORT MKT was also set to sell to close. 16:32 you clicked the wrong one to re-edit. Might've caught it later in the Directed Trade Options "Action" tab. Otherwise there coulda been some nasty losses. Or at the very least, too early of an exit if you had any positions in an option you were trying to short.

[@ThinkTradeProfit]

Hi Zaddy, Thanks for supporting the channel and calling that out. I am definitely overdue for some remakes for the most popular videos. Feel free to reach out with any questions in the Comments sections of videos. I try to answer all of them in time. Good Luck!

[@amank8086]

How do you control your stop loss using ATP with lets say a trail stop on an option?

[@ThinkTradeProfit]

Hi Aman, There are a couple ways to enter stop orders in ATP. Trade Armor is one way > go to Trade & Orders > Trade Armor - the options available are picture here - imgur.com/iqR1c6m You can use the Directed Trade window and create Options shortcuts and set a pre-defined range for stop loss and profit target more on that here kzbin.info/www/bejne/bIjTZZaNpqt8ptk and here kzbin.info/www/bejne/pKKZoIilqNWin6c . I hope that helps!

[@emanik2]

You should make a video on ATP's options trade ideas screening on fidelity.

[@AngryWiteMan]

Awesome video Kent! Watched several on your channel. I'm an avid options trader and have a specific question for you since I can't seem to find the answer online. On Fidelity, can one set a stop loss on options contracts based on STOCK price? Meaning, if support on SPY is 395.25 and I'm in same day calls for let's say $1.00, can I set the stop loss to trigger based on SPY price of 395.20 instead of option contract price? Thanks a million!

[@ThinkTradeProfit]

Yes, to both. You can use Conditional Orders that trigger off different instruments. www.fidelity.com/learning-center/trading-investing/trading/conditional-order-types In Active Trader Pro, go to Trade & Orders, then Conditional Trade to setup. imgur.com/b9PwN6i Good Luck!

[@AngryWiteMan]

@@ThinkTradeProfit Great news! I was trying to figure that out for a while

[@donkndave7811]

Hey Kent! Since you have experience with options, have you worked with any LEAPS? Care to comment on the pros and cons of them? Im thinking about SPY, NASDAQ, BA and AAPL. Opinions? Thanks!

[@ThinkTradeProfit]

Hi DonknDave, I think they are a good choice if you are bullish and you can get the far away ones (6-9 months) cheaply. I, personally, don't expect much from the markets overall in 2021. I highly doubt it will be like 2020. I am actually short-term bearish looking for opportunities to short select over-extended stocks.

[@donnywilliams4376]

Hey thanks for an informative video.. Just a heads up... You forgot to blur your account number when you started talking about strategy ideas at around 9:25

[@ThinkTradeProfit]

Hi Donny, I appreciate the heads up! Can never be too careful. Glad the video was helpful. Good Luck!

[@e350mn]

QQ: When you Sell to Open a covered call and the underlying actually goes above your selected strike price, you lose (get assigned) your shares to the options owner but of course keep your premium and any gain in the underlying up to strike price. BUT, there is a message in the Fidelity trade builder that says you will still own the shares and can be exposed to potential downside price movement. That's not true is it? Am I misunderstanding?

[@ThinkTradeProfit]

Hi Greg T, I think it's a warning message to ensure that you understand that you still own the stock (at the time you are selling your call) and declines in price could cause losses. They're not referring to what happens if the stock is called away from you (it goes above your strike price). I hope that helps. Good Luck!

[@judyvargas1581]

Do you know if Fidelity will add VWAP to the graphs?

[@ThinkTradeProfit]

Hi Judy, I don't know. It has been requested (for years) by multiple members of our community. I haven't talked to nor have knowledge of their software development department and how they work. If I haven't mentioned it before, I get around this issue by using a free account of tradingview.com on the side in a browser to look at VWAP on charts.

[@Chris-xf8ek]

Kent, what laptop are you using? I cannot run ATP on my brand new Mac Air M1. Thanks for the great videos.

[@ThinkTradeProfit]

I started with a refurbished Dell i5 with 8GB ram Windows laptop, and it ran well. I have some suggestions on your other comment about improving the Mac experience with ATP.

[@twon6604]

Thank you

[@ThinkTradeProfit]

Hi Twon, I hope it was helpful. Thanks for supporting the channel.

[@siliem1]

please let me know how to use active trader pro on 2 or 3 monitors, the app is stuck on only one monitor and I have 2 monitors I wasn't enabled to use the 2 monitors with that App

[@ThinkTradeProfit]

Hi Selim, You need to "float" all the windows you want in your layout imgur.com/Mewaoo3. Right click near the border of any window, 'Float Window'. Then move every thing outside of the main "green" frame application frame and drag them across your monitors. Remember to save your layout.

[@DmytriE]

What can you infer from a narrow vs. wide spread?

[@ThinkTradeProfit]

Hi DmytriE, When I see narrow spreads, I think there is a lot of liquidity, people are more willing to buy and sell at this time (or price range). For me, wider spreads represent more risk, more volatility, and market participants are less likely to buy or sell at this time (or price range). Some stocks and options have naturally "wider" spreads. PYPL naturally trades with a wider spread than AAPL or MSFT. I trade a lot of it, but I make an effort to Buy at the Bid or Short at the Offer when entering the trade. Usually, stocks and options of very volatile stocks (and very expensive stocks) have wider spreads, like TSLA. Wider spreads don't necessarily have to be avoided, just try to get an entry or exit price in the middle. With Fidelity price improvements, many market orders on stocks or options with a wide spread are executed with a better price than the bid or offer. I hope that helps. Good Luck!

[@josedones8880]

Hey, Awesome video. but how do I check the Greeks on Fidelity ?

[@ThinkTradeProfit]

Hi Jose, Go to Options > Options Chain, then right click on the bar where the fields are labeled and select 'Settings' imgur.com/HG7FfHV Then scroll down the Available columns till you see the Greeks. imgur.com/QJvVpJv Then select those and 'Apply'. If you have a position, you could use Options > Options Summary and look to the columns on the far right. Good Luck!

[@pklemets]

Good step x step walk through of ATP

[@ThinkTradeProfit]

Hi P Klemet, Thanks for the positive feedback! I'm glad it was helpful.

[@berttian5908]

How do I enable the level of options I want? Do i get to choose it, or do they choose it for me? Im looking at level 2 atleast

[@mstanley1178]

You need to apply for options through an online application at Fidelity, or a paper application for certain account types (HSA for example). The application is straight forward. Certain options levels require full margin as they involve shorts (selling naked options) and naked spreads such as strangles.

[@ThinkTradeProfit]

You can apply online and choose your level. The higher levels require a margin account. www.fidelity.com/options-trading/overview There is a button here and it lets you pick which account you want to apply for. You can peek into it without completing it to look around. Also check out page 5 of the paper application. It shows what is included in the different levels. www.fidelity.com/bin-public/060_www_fidelity_com/documents/options-application.pdf

[@mybook9837]

these are good videos, a suggestion: can you move your picture away from the screen beeing shown and also enlarge the window being discussed,.

[@aznofjapan]

also move the mic away from the keyboard

[@noahjackson7626]

thank you. im going to switch over.

[@walkerluke4470]

I have one more question about options regarding the stop loss, and the exit. More clearly, how I should enter it on my platform? (Active Trader Pro) Say for instance I enter a (buy the bid) as my entry, Would a (sell the ask) serve as my exit out of the trade? Also, what would I enter to serve as my stop loss? Sell the bid??? Hopefully I’m explaining this in a way that’s understandable to you. Thank you.

[@ThinkTradeProfit]

Hi Walker, The bid (at any point in time) are "people" (market makers) willing to buy at a certain price. If you put in an order at the bid and it doesn't change in the next fraction of a second. You will get executed. If you try to sell at the ask, you may not get a an execution right away. Selling at the ask, with no change in the ask only adds to the list of other "people" willing to sell at the price. For me, I use limit to get in my trades and market to get out (and get many price improvements on my market orders). When I want to get out, stop loss or otherwise, I want a "guaranteed" execution" - get me out now. Maybe you are more comfortable with selling at the bid, so you get THAT price. Just keep in mind, in fast markets, that could change. If it does, your at the bid sell order (limit order) won't get executed if the option moves lower. Short story - I don't think you should use sell at the ask for your stop, because you will have to wait for the next buyer to buy. You sell at the bid or sell market. I hope that helps.

[@walkerluke4470]

@@ThinkTradeProfit Yes, this was VERY helpful! I appreciate you taking the time to explain that in depth and clearly. This will help me in making better decisions when executing my trades. #Yourock! Thank you.

[@chocolatecoveredgummybears]

lmao that bounce tho right after you got out on spy, that was wild

[@ThinkTradeProfit]

:)

[@chocolatecoveredgummybears]

@@ThinkTradeProfit 🤗

[@josephg8818]

Question with fidelity its 65 cents to trade a option, so if selling a call contract is that 65 cents times 100 ? 65$

[@ThinkTradeProfit]

Hi Joseph, Options contracts are usually for 100 shares of the underlying stock. Selling a single call option contract (giving someone the right to Buy 100 shares at a price) would have a fee of 65 cents or $0.65.

[@walkerluke4470]

How are you tracking your pnl throughout the trade in the platform? Where would that be located?

[@ThinkTradeProfit]

Hi Walker Luke, Go to the main navigation > select 'Accounts' > then 'Positions'. That will open a 'Positions' window. You can have more than one. That window toggles, and you can change to 'Closed Positions'. I have each of those in my layout, Positions and Closed Positions. Select ' Manage' in those windows and 'Add/Remove Columns'. You want to use 'Unadj Purchase Price' and 'Unadj Short-Term G/L'. This will keep track of your positions correctly and update if you average into trades. imgur.com/8sQ0S4U imgur.com/tpJUwKX

[@walkerluke4470]

Thank you. You're awesome.

[@chocolatecoveredgummybears]

wow those market fills are insanely fast. i was on lightspeed and it seems even just as fast. i might switch over man

[@ThinkTradeProfit]

Hi CCGB, The fills on Active Trader Pro are fast. I have never been on Lightspeed, but have considered. It has a great reputation (and some fees, of course). You could always try a small account at Fidelity and try it out. Good Luck!

[@chocolatecoveredgummybears]

@@ThinkTradeProfit i think i will brother. i got eaten up by lightspeed commissions after a few months i noticed 3k in fees lol was like oh man

[@chocolatecoveredgummybears]

@@ThinkTradeProfit not sure if you know but lightspeed adds a bunch of other fees too like execution fee and about 2 or 3 more outside of just regular commissions. kinda crazy but i think that's for more of professional traders with 6 figure accounts not for rands like me with only 30k lol i could be wrong tho

[@silverstream4585]

What about the greeks? Where does Fidelity proved the info on the delta, theta, etc...?

[@chrisrayot2433]

Is there a way to set a stop loss and also sell at a certain price? Ex I buy stock X at 20, place a stop loss at 19, and trigger a sell at 21.

[@ThinkTradeProfit]

Hi Chris, Yes. It is easier with stocks than options. For stocks you can use Trade Armor (video here - kzbin.info/www/bejne/jGXQfaqtf9eDn7c ) and put in an order like this OTOCO - imgur.com/aACpaZv When you buy the stock it sets your profit target and stop loss and you can use the UI to adjust them. For Options, I think you must get the Option symbol and put in a Conditional Order (Trades & Orders > Conditional Trade) and it would look like this - imgur.com/eXQI71w You can learn about all the order types here - www.fidelity.com/trading/faqs-order-types Thanks for supporting the channel.

[@chrisrayot2433]

Perfect, thats what I want, thanks bro

[@whos_agent2129]

Is there a way to do debit spreads on fidelity? If you're going to continue down the path of showing how to option trade. Can you show how to execute some of the different option strategies techniques on the fidelity platform? Spreads, Shorts, Writing covers...etc. I can't fine any videos on this. You pretty much have to call and ask them to walk you through it. While other platforms such as Robinhood has these things available. Which is pushing people to switch to other platforms for sure.

[@ThinkTradeProfit]

Hi Whos_Agent , Thanks for checking out the channel. I should spend some more time demoing options trading. There have been a lot of requests. I will plan another video to go in depth. Until then, I highly recommend the webinars listed here. www.fidelity.com/learning-center/investment-products/options/options-overview They are live and you can ask questions in real-time. Generally, they are about an hour in length and they demonstrate with Active Trader Pro.

[@poltad]

I noticed today that Fidelity lags in the level 2 and time and sales prints by a couple of seconds vs Interactive. Do you have any issues with that?

[@ThinkTradeProfit]

Hi Tad Pole, I'm surprised. I can't inspect myself as I don't have an IB account. My only frame of reference is 100's of trades in fast moving stocks throughout the year (more than 1,000+ scalps in FB alone this year). I get a very high percentage of price improvements on market orders and most of my exits on scalps are market orders. Is it something you noticed over a period of time or just one day or time of day? I never felt that the platform lagged that much (if at all) because I have had so many fast market executiions that were better than the best bid and ask at the time.

[@poltad]

@@ThinkTradeProfit I checked today after my fill looked off on RAD. I always have both IB and Fidelity up and today ended up using IB to watch tape and Fidelity for executions because of the Fidelity lag in prints and level 2 in the directed trade window. I am going to keep monitoring it and will post a video if it happens again tomorrow.

[@ThinkTradeProfit]

@@poltad That is definitely the part to scrutinize. When you believe your fills may be less than good, go to the historical times & sales and find your trade. It will also show the current best bid and best offer during that time. That data is for the overall market and should be very, very similar to what IB has in historical times & sales. imgur.com/lHg3P7W imgur.com/VwDgMiZ All market participants have to report their trades to FINRA. That will give you a better idea if Fidelity was "slow" and you got something less than ideal. I've spent a lot of time looking at Price Improvements from Fidelity and examining historical times & sales to see where the market was at the time. They have always been excellent, even in fast moving stocks. Definitely interested in your findings. Thanks for sharing!

[@poltad]

Same thing today, anywhere from 1-3 second lag vs IB. The more windows I have up the greater the lag so I suspect it has something to do with bottleneck in data feed. Going to call them to see if there is a way to fix it and will post any answers they have.

[@poltad]

If I limit to only 3 Directed Trade windows it seems in sync if not 1 second ahead of IB. More than that introduces a delay. Charts don't seem to impact lag, although Fidelity charts pretty limited so I may not use those anyways. So I think the key is not to have more than 3 directed trade windows open at the same time and use charts from another brokerage. Fidelity looks great so far for fills, free trades, direct routing, pre IPO access, and stability. It lacks advanced charting, 30 second charts, and hot keys so definitely sufficient for swing/positional trading and long-term investing. Used in conjunction with another platform suitable for quick scalping and day trading. On short selling it seems to lack available locates for borrowed shares. Do you ever short low float runners using Fidelity?

[@STOCKBOY-fu5sd]

Do you sell cash secured puts and if so could you do a video on it?

[@ThinkTradeProfit]

Hi STOCKBOY7254, I don't do a lot of option trading. I prefer scalping large cap stocks for small amounts. This is an excellent write-up by Fidelity on Cash Covered Puts. bit.ly/39SP16H Basically, make sure you have at least Level 2 Options enabled for your account. It would be 'Sell to Open' on whatever Put you find. Then ensuring you have the cash in the account to cover buying the stock at the strike price of the put you sold. Wait for the put to expire and you keep the premium. If the stock gets assigned to before it expires, you still get the premium, but you also own the stock at a lower price.

[@Dan-rn6xm]

Thanks. What are the specs of your machine?

[@ThinkTradeProfit]

Hi Dan, Before I answer, let me mention that you do not need an insanely good machine to run Active Trader Pro. For my first year, I used an older Dell laptop with an i5 processor and 8GB RAM and integrated graphics which could support two monitors. Right now, I have a Lenovo desktop with 16GB RAM i7 processor (newer model) and a NVIDIA GeForce GTX 1660 graphics card. Probably the most important thing is a good internet connection that is stable, then memory (RAM) if you want to run other apps (Chrome browser is a memory hog) while trading.

[@dizzolve]

Is this stuff relatively new for ATP? It looks even better than TOS.

[@ThinkTradeProfit]

Hi Bobby, I'm not sure. I had never traded options with Fidelity before. There were a lot of requests for a peek at Fidelity Option features and trading so I recently enabled options on one of my accounts.

[@jeremyfarr2473]

Do you have a tutorial on how to execute a Put Credit Spread on ADP?

[@ThinkTradeProfit]

Hi Jeremy, I don't have a video on that yet, but this might be helpful. www.fidelity.com/viewpoints/active-investor/bull-put-spread

[@jeremyfarr2473]

Thank you for the quick response! I understand the concept of it but I'm having a hard time navigating my way through ATP to actually do it.

[@amywachsmuth4293]

Great video have u had much luck with options ? I watched ur video on Scalping grade looks good but is it worth scalping on options ??

[@ThinkTradeProfit]

I haven't traded options in many years. I created this video because I had many inquiries about showing what was available in Active Trader Pro for options trading. For me, I'm not sure it's worth scalping options. I think it might make more sense to create some strategies for longer plays.

[@amywachsmuth4293]

Do you ever watch trade warriors Ross Cameron? He pumping lots of money into positions to get /make $$$$. Why don’t you trade on the large gapper in pre trading ???

[@ThinkTradeProfit]

@@amywachsmuth4293 Yeah, he has been trading a long time and has bigger accounts. Premarket is very illiquid and tough to trade. He's so large that he can move markets himself. He also live streams so he can pump up stocks by getting others into them (sometimes after he is). Small caps are definitely tradeable, but many are hard to borrow so you need a broker with good stock "locates". Fidelity is OK, but many of the small caps that are pumped up in premarket (and are good to short after the open), Fidelity doesn't have those stocks to borrow. I need more practice on those types of stocks, but I also could use some hot keys and faster ways to get out of 5,.000+ shares at a time. I think Ross uses Lightspeed Trading. He definitely has some speed advantages that Fidelity does not have.

[@amywachsmuth4293]

Oh ya he has hot keys to buy more or sell on the dips. I agree he is pumping the market Up as he trades and he calls it out then he able to sell as he has a quicker tape as others are delayed on seeing the market by 10 seconds or so. Wonder if u create hot keys for like what Ross does - I saw ur video on hot yo create the quick keys

[@amywachsmuth4293]

did you make any money on the Apple Trade option you did? how much?

[@skyt7002]

thanks ken

[@ThinkTradeProfit]

Hi Son, Thanks for the support!

[@richlaw5136]

Why cant I find highest percent change in price for options? There is no option for it under filters. In TOS I was seeing like 1000% price changes.. not in ATP

[@ThinkTradeProfit]

Hi Rich, I see that you can rank by Highest % Chg when choosing the other Options Filter menu items (High Call Volume, High Open Interest, etc.), but I think you'll want to build a custom scan in the web app. It becomes available in Active Trader Pro immediately. imgur.com/91k8XM3 Just Select 'Custom' in Active Trader Pro and pick from your menu of custom built scans. I hope that helps. Good Luck!

[@richlaw5136]

@@ThinkTradeProfit thanks, it does.. I am only able to scan by underlying stock, not individual options. In TOS you can scan every option on the market for highest percent change, not by underlying stock change. Kind of different. I still can't figure out how to buy and sell.. I am getting alot of red error messages, also I can't buy/sell options that expire the same day. It says that buying the current option would leave my account with an uncovered order, or something like that. Kinda confused, Thank you though!

[@BelieveTheHype777]

Hello! Thanks for your fantastic videos, they are very helpful. I know you haven't done videos in about 2 months I think, so I am not sure if you are still active, but if you are, I would greatly appreciate your help. If you have a Cash Management Account with Fidelity (essentially a checking account), can you day and swing trade with that account? I tried it, but got restricted (good faith, free ride), not sure why that occurred. I also opened a separate brokerage account with Fidelity for purely trading since the prior account is restricted and going to attempt trading with that again, but afraid to get that account restricted as well. I thought you had at least >$25000 in balance at EOD, you are allowed to day trade unlimited without issues (instant settlement of what you sold, so you can buy again right away), so I am not sure what took place. Do you have to enable margin to be able to do so? Thanks for your guidance and help!

[@ThinkTradeProfit]

Yes, you need a margin brokerage account. If you maintain $25,000+ at all times, then you can do unlimited day trades (with positions up to your Buying Power). With this Pattern Day Trader account, you will have 4x the Buying Power. There are some exceptions with volatile stocks, but the platforms will ensure you do not exceed your buying power. If the balance of the account drops below $25,000 you will have to deposit cash to bring the balance up to $25,000 or more or it will be restricted for 90 days. If you are new, I would have a buffer of more than a $25,000 balance, because any stock losses will be calculated in daily. This means you will not be able to hold a losing position in your account -$1000 overnight with only an initial $25,000 balance. If you decide to hold something overnight, then that will restrict your Buying Power the next day. If you close all your trades same day, you will be able to trade as much as you like with your Buying Power. You can find this by logging into the Fidelity web portal and inspecting the Balances tab. Good Luck!

[@BelieveTheHype777]

@@ThinkTradeProfit Thank you so much, greatly appreciate your time and help!

[@BC-gq7bw]

How many different funds do you have, ETF, funds , etc

[@ThinkTradeProfit]

Hi B C5, Do you mean me, personally? Or how many funds does Fiedlity have? Fidelity has many - bit.ly/3pSBsJr If I were to suggest some funds or ETFs, I would recommend these from Vanguard. I average into these ETFs every 2 months with some consistent dollar value. investorplace.com/2020/10/7-vanguard-etfs-everyone-should-consider/ You can buy these using any $0 commission broker (Fidelity is good).

[@BC-gq7bw]

@@ThinkTradeProfit I was asking personally. Do you have say 20 diff ETFs, 30 mutual funds, etc.. how many is too many to have

[@ThinkTradeProfit]

@@BC-gq7bw I have diversified across 12 funds and ETFs, but I think you can have many more if your goal is to participate in diverse industries and sectors. I think Stocks, Bonds, Real Estate (REITs), maybe crypto currencies, other currencies (Euro, Pound), and some commodities (Oil?) are all areas you should consider depending on your risk tolerance.

[@MobtacticsBruh]

I think our man got another job. Whered'ya go!?

[@ThinkTradeProfit]

🙂 I'm still around. I wish Fidelity would release some new features. Something more exciting to demo in a video.

[@joeybtheman1906]

do an example of selling a put and then buying back the position to close it

[@ThinkTradeProfit]

Hi Joeyb, Thanks for checking out the channel. So that you do not have to wait for a video, the basic sequence will be a Sell to Open order followed by a Buy to Close order. I am assuming that you have at least Level 2 Options permission granted from Fidelity. This would enable you to sell cash covered puts. You would not be able to sell uncovered puts without at least Options Level 4. Do not be afraid to enter practice orders in the platform and then cancel them. Just be sure to put your limit prices far below the market with a practice Buy order and far above the market for a practice Sell Order, so that they do not have a chance to execute.

[@joeybtheman1906]

@@ThinkTradeProfit hi again, how do you buy a call and sell a call?

[@joeybtheman1906]

@@ThinkTradeProfit thank you!

[@ThinkTradeProfit]

@@joeybtheman1906 Hi JoeyB, Sorry, I missed this initially. Are you thinking of a Call Spread like here - www.investopedia.com/trading/options-strategies/#3-bull-call-spread One way would be to go to Options > Option Chain for the stock you want, and select Buy to Open and Sell to Open for the different strike prices that you want to do the spread on. imgur.com/w3p4n3Dimgur.com/w3p4n3D Or you could grab those two Options symbols in the resulting order window and use them in the Directed Trade window with the Level 2 showing. Or you could research the Calls you want to trade in the web app and grab the ticker symbols from there researchtools.fidelity.com/ftgw/mloptions/goto/optionChain and use in Active Trader Pro. I hope that helps.

[@joeybtheman1906]

@@ThinkTradeProfit there we go. Buy to Open and Sell to Open, is how to buy and sell a call. thank you!

[@Chris-xf8ek]

1-1-2023

[@jinrosemont]

First

[@ThinkTradeProfit]

🤣 Thanks Jin!

[@timetorelaxfocus9642]

I don't understand the terminolagy of options. It appears you are renting shares for a premium and seeing if your bet is true.

[@ThinkTradeProfit]

Yeah, something like that. You are buying or selling a contract with the right to buy or sell (usually 100 shares) a stock at a certain price. The contract has a limited life span (expiration date). The strategies that you can put on with options can get more complicated. www.fidelity.com/learning-center/investment-products/options/options-overview

[@timetorelaxfocus9642]

@@ThinkTradeProfit Thanks, I'll look into it. BTW, I peek at the options that are in as calls vs puts, do the options effect the price movement at all?

[@ThinkTradeProfit]

@@timetorelaxfocus9642 The underlying instrument's price (the stock) affects the price of the options along with the time to the option's expiration.

[@szee8588]

You guys don't have option chains, and double clicking on a call or put side on a strike to open a trade? This is so rudimentary.

[@ThinkTradeProfit]

Hi S Zee, Thanks for checking out the channel. Options chains are in the main nav from Options > Options Chain. The best order entry would be from the Directed Trade window, from main nav 'Trade & Orders' > Directed Trade Options, then setup option shortcut buttons there for whatever you need. Fidelity has the best price improvements (they don't sell order flow), stability, and speed of execution of any of the $0 commission brokers. Active Trader Pro could use some upgrades, but Fidelity has never given me a problem in fast markets, cancelling orders, etc. I have a second account at TD/thinkorswim, but they continue to have issues as they merge with Schwab. Good Luck!

[@sebsefyu]

Kent. What is up with Fidelity and OTCBB trades? Have u seen this issue? I have not executed OTCBB trade yet but check this out: kzbin.info/www/bejne/rWiriWZ8pryjj7c

[@ThinkTradeProfit]

Hi Sebastian, I watched. I haven't run into those issues. The $50 commission is a little weird, but notice he doesn't tell us what stock it was. So it's hard to research it. Sounds like it was super new, not listed completely, or something else? Him being limited to only being able to buy 9,999 shares of a penny stock without talking to a rep and having his account coded that he understands the risks seems fair. Fidelity bears some responsibility for ensuring its clients understand the risks of all trading activity. You can't trade extended hours without talking to them first either. Call them up and tell them that you plan to trade OTCBB in the future and would like to have your account "coded" for that. That will avoid any issues during the trading day. www.fidelity.com/viewpoints/active-investor/trading-penny-stocks From that page "Because of the unique risks of investing in penny stocks, Fidelity customers can only buy and sell penny stocks by speaking to a representative and acknowledging their understanding of the specific risks associated with trading penny stocks. This is required for those who want to place trades that meet certain criteria." If a customer says they did not understand the risks of trading xyz and can prove their broker did not advise them of the risks, they can win big settlements in court.

[@sebsefyu]

@@ThinkTradeProfit Thank you for feedback. I'm more concerned with that $50 commission. I hope that don't happen to me. I'm still on sidelines as gold not correcting to levels i'm looking at. Thank you again.

[@Paragon_Reason]

So sick of Watching Ads with that scam artist zealot Grant Cardone... I can't escape him.

[@ThinkTradeProfit]

I'm not a fan of him either :) . Thanks for supporting the channel. Good Luck!