Ever since the publication of the last article, How to Read that Option Chain, I have received emails asking how to change the font size and color on my TradeStation OptionStation Analysis window. Of course, you can call TradeStation's technical support line at (800)-822-0512 and tell them you are an Online Trading Academy student and they will be happy to help. Although I seldom write on the topic of platform functionality, the frequency of the same question compels me to oblige.
First of all, before we get into the customization of the TradeStation OptionStation Analysis window, you students need to be reminded that no colors or font size are going to give anyone an edge in trading options. It is understanding options as well as using proper execution techniques that matter. Having said that, this newsletter will start with the functionalities of TradeStation. Part 1 will discuss Colors and Part 2, Font Size. Part 3 will get to what really matters: Execution using TradeStation.
Part I: Colors
As the previous article's Figure 1 pointed out, the black and white default setup of the TradeStation OptionStation Analysis window is somewhat unfriendly. Each side (calls and puts) has too many different columns that look impersonal. Except for last price, all the numbers are white and the background is black.
There are a couple of ways to change these colors. You can change the entire template, or just change specific columns. In TradeStation 9.0, to change the entire template, make sure you have an OptionStation Analysis window open and follow these steps:
1. Left click Format on the very top horizontal line of TradeStation.
2. Left click Apply Template.
3. Select the color template you wish to use. Classic White is my choice because it projects well in the classroom.
You can also change the entire template when you are first opening the OptionsAnalysis Station. Open a new OptionStation Analysis. A Create OptionStation Analysis popup box will appear asking you to type in the symbol you are trading. You can select the template here. See Figure 1 below:
Having changed the template, a trader may still want to change the color of specific columns. To change a column's color, follow these instructions:
1. Click on any column header (i.e. Open Interest, Volume, Vega, etc.); this highlights the column
2. Right click on the column
3. Select Insert Indicator from the popup menu
4. Make sure the Options tab is selected
5. On the right side under Selected (Call Options), select the column you want to change. We will use Delta for our example.
6. Select Format directly under that menu
7. You will do the same for the Selected (Put Options) menu
8. Format Indicator: Delta window will be showing now
9. Select the Color tab
10. Select your preferred Foreground Color (this is the font color, we have selected black)
11. Select your preferred Background Color (we have selected from the Other colors, a light blue)
12. Look at your selections in the Preview area at the bottom of this window
13. If you like what you see, click OK
Part II: Font Size
1. Left click Format tab on the very top horizontal line of TradeStation
2. Select WINDOW 3. Select the Font tab
4. Select Grid Values and change the Size to your choice
5. Select Headings and change the Size to your choice
6. Check the Preview window at the bottom to see the results
7. If you like the results, select OK
Part III: Execution
Now that we've looked at changing the look and feel of your OptionStation Analysis window, let's get really practical and discuss trade execution functionality. I have heard from many novice option traders the comment that executing spread trades on TradeStation is cumbersome. Well, driving a stick shift car is viewed by some as a lot of work, too, but many love it. No matter what, keep in mind when trading options, there are always choices; we can leg in, or we can fire in a spread.
CHOICE A: Open Leg by Leg
In the majority of my classes, when simple spreads are used (two legged verticals, diagonals or horizontals), I prefer to teach the old-fashioned way of entering: Buy to open first; sell to open once the buy order is filled. Trade execution is simple; use the Order Bar near the top of the TradeStation Desktop which Online Trading Academy students coming from the Professional Trader class are already familiar with.
1. Select the bid or ask of the option strike price you want to trade. This will populate the Option section of the Order Bar with that particular option symbol.
2. Enter the Quantity you are going to buy.
3. Enter the Limit price you wish to get filled at.
4. Select the Buy to Open button in the order bar.
5. Repeat for the short leg except click the Sell to Open Button for step 4.
CHOICE B: Open as a Spread
Executing your trade as a spread involves a few more steps. Please refer to the previous articles written about how to do this: Placing a Vertical Spread with TradeStation, Placing a Horizontal Spread with TradeStation & Placing a Collar with TradeStation.
In conclusion, in this article, I have explained how to customize the TradeStation OptionStation Analysis window. None of the color and font changes adds any edge to trading options, hence, make sure the correct option strategies are selected and executed. The platform should be viewed just as a vehicle to achieve its end goal, or a car that gets us from point A to point B regardless of the color or font size. Have green trading.
Source: http://www.fxstreet.com/education/related-markets/lessons-from-the-pros-options/2011-07-26.html
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