Opening and Closing Option Trades in TWS | TWS Tutorial

Awhile back I made a tutorial on how to set up and use Trader Workstation (TWS) from Interactive Brokers. In that tutorial, the part about placing orders was a bit incomplete in hindsight and I've received several emails about it. So, here is a walkthrough on how to open, monitor, and close option positions in TWS. 

1

The platform upon opening. Head over to the option chain

2

Turn on Strategy Builder

3

Click on the Bid to sell a leg and the Ask to buy a leg. Here I've created a Bull Call spread in AAPL

4

Click +Profile to see the risk profile and some other stats

5

Be sure to adjust your limit so that you get filled at a fair price

6

This is the final screen before your order is opened. Make sure everything is right before hitting Transmit

7

The open order is now under the orders tab at the right of the platform

8

Sometimes if an order isn't being filled you may need to adjust the limit

9

Remember if you're selling, adjust closer to Bid. Buying, closer to Ask.

10

The order will turn gray with a check mark when filled and there will also be a pop-up notification at the bottom right of your screen

11

Switch over to Trades to see detailed info on fill prices (for spread and all legs) as well as commission paid

12

The open position is now seen under Portfolio

13

To close, simply right-click the open position and either choose the red CLOSE button or select Trade > Close 100