THINKORSWIM OPTIONS BOT

1 – STARTING AT THE OPEN (0930 EST), CALCULATE SPREAD OF SELLING HIGHER PRICED
CALL AND BUYING LOWER PRICED CALL HUGGING THE AT THE MONEY PRICE
2 – SIMULTANEOUSLY, CALCULATE SPREAD OF SELLING HIGHER PRICED PUT AND BUYING
LOWER PRICED PUT HUGGING THE AT THE MONEY PRICE
3 – WHEN THE DIFFERENCE OF SPREADS ARE LESS X AMOUNT CENTS (INPUT 2), EXECUTE
ALL 4 TRADES
4 – FROM TRADE ENTRY, BOT WILL CONTINUE TO CALCULATE BOTH CALL AND PUT SPREADS
MINUS CREDIT SPREAD PREMIUMS UNTIL ONE SPREAD HITS X AMOUNT (NEGATIVE NUMBER)
(INPUT 3). WHEN THIS HAPPENS, THAT SPREAD TRADE WILL BE REVERSED AT A LOSS.
5 – THE CALCULATION OF THE REMAINING TRADE’S SPREAD MINUS THE TRADE’S PREMIUM
WILL CONTINUE UNTIL EITHER THAT TRADE HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 3)
OR THAT TRADE’S OPTION ENDS UP WORTHLESS AT THE END OF DAY (FULL PROFIT) OR IF
BY 1552 EST (INPUT 4), ASSET PRICE IS IN BETWEEN OPTION TRADE’S STRIKE PRICES OR IS
IN JEOPARDY OF CLOSING IN THE MONEY, EXECUTE A MARKET TRADE TO MAKE SURE
OPTION TRADE IS CLOSED BEFORE END OF DAY AND IS NEVER EXERCISED (LOSS CAN BE 0
TO SPREAD DIFFERENCE)
6 – IF BOTH TRADES ARE CLOSED BEFORE END OF DAY, BOT WILL AGAIN CALCULATE AT THE
MONEY CALL AND PUT SPREADS TO HOPEFULLY ENTER ANOTHER TRADE. THE SPREAD
DIFFERENCE (INPUT 5) AND THE MINIMUM SPREAD TOTALS (INPUT 5A) WILL BE CONSIDERED
TO DETERMINE IF ANOTHER TRADE HAPPENS.

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7 - IF THE CONDITIONS ARE MET THAT AN ADDITIONAL TRADE OCCURS, FROM TRADE ENTRY,
BOT WILL CONTINUE TO CALCULATE BOTH CALL AND PUT SPREADS MINUS CREDIT SPREAD
PREMIUMS UNTIL ONE SPREAD HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 6). WHEN THIS
HAPPENS, THAT SPREAD TRADE WILL BE REVERSED AT A LOSS.
8 – THE CALCULATION OF THE REMAINING TRADE’S SPREAD MINUS THE TRADE’S PREMIUM
WILL CONTINUE UNTIL EITHER THAT TRADE HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 7)
OR THAT THE SPREAD MINUS CREDIT SPREAD HITS A PROFIT TARGET (INPUT 8) OR IF BY
1552 EST (INPUT 9), ASSET PRICE IS IN BETWEEN OPTION TRADE’S STRIKE PRICE OR IS IN
JEOPARDY OF CLOSING IN THE MONEY, EXECUTE A MARKET TRADE TO MAKE SURE OPTION
TRADE IS CLOSED BEFORE END OF DAY AND IS NEVER EXERCISED (LOSS CAN BE 0 TO
SPREAD DIFFERENCE)
9 – REPEAT 6 THRU 8 UNTIL DAY ENDS

INPUTS –
1. THE ASSET TRADED
2. THE MAXIMUM DIFFERENCE OF ENTRY SPREADS
3. THE NEGATIVE SPREAD DIFFERENCE
4. THE TIME OF DAY AN OPTION TRADE IS EVALUATED TO SELL
5. THE MAXIMUM DIFFERENCE OF ENTRY SPREADS
5A – MINIMUM PRICE OF SPREAD DIFFERENCES
6. THE NEGATIVE SPREAD DIFFERENCE OF ADDITIONAL TRADE MINUS TRADE PREMIUM
7. THE NEGATIVE SPREAD DIFFERENCE FOR ADDITIONAL TRADE MINUS TRADE PREMIUM
8. PROFIT TARGET OF REMAINING TRADE OF ADDITIONAL TRADE(S)

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 9. THE TIME OF DAY AN OPTION TRADE IS EVALUATED TO SELL
10. TRADE FEES

OUTPUTS –
 SHOW TRADE ENTRY DETAILS – THE ASSET, THE PRICE OF ASSET, OPTION
STRIKES, OPTION PRICES + OPTION SPREAD + DIFFERENCE OF SPREADS
 SHOW PROGRESSION OF TRADE MINUTE BY MINUTE - THE ASSET, THE PRICE OF
ASSET, OPTION STRIKES, OPTION PRICES + OPTION SPREAD + DIFFERENCE OF
SPREADS
 SHOW END RESULT – PROFIT/LOSS OF EACH TRADE AND TRADE FEES)

EXAMPLE –
1 - STARTING AT THE OPEN (0930 EST), CALCULATE SPREAD OF SELLING HIGHER PRICED
CALL AND BUYING LOWER PRICED CALL HUGGING THE AT THE MONEY PRICE
2 – SIMULTANEOUSLY, CALCULATE SPREAD OF SELLING HIGHER PRICED PUT AND BUYING
LOWER PRICED PUT HUGGING THE AT THE MONEY PRICE

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3 – WHEN THE DIFFERENCE OF SPREADS ARE LESS X AMOUNT CENTS (INPUT 2), EXECUTE
ALL 4 TRADES

4 – FROM TRADE ENTRY, BOT WILL CONTINUE TO CALCULATE BOTH CALL AND PUT SPREADS
MINUS CREDIT SPREAD PREMIUMS UNTIL ONE SPREAD HITS X AMOUNT (NEGATIVE NUMBER)
(INPUT 3). WHEN THIS HAPPENS, THAT SPREAD TRADE WILL BE REVERSED AT A LOSS.

5 – THE CALCULATION OF THE REMAINING TRADE’S SPREAD MINUS THE TRADE’S PREMIUM
WILL CONTINUE UNTIL EITHER THAT TRADE HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 3)
OR THAT TRADE’S OPTION ENDS UP WORTHLESS AT THE END OF DAY (FULL PROFIT) OR IF
BY 1552 EST (INPUT 4), ASSET PRICE IS IN BETWEEN OPTION TRADE’S STRIKE PRICES OR IS

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IN JEOPARDY OF CLOSING IN THE MONEY, EXECUTE A MARKET TRADE TO MAKE SURE
OPTION TRADE IS CLOSED AND IS NEVER EXERCISED (LOSS CAN BE 0 TO SPREAD
DIFFERENCE)

EXAMPLE OF ADDITIONAL TRADE IF 1ST TRADE LOSES

6 – IF BOTH TRADES ARE CLOSED BEFORE END OF DAY, BOT WILL AGAIN CALCULATE AT THE
MONEY CALL AND PUT SPREADS TO HOPEFULLY ENTER ANOTHER TRADE. THE SPREAD
DIFFERENCE (INPUT 5) AND THE MINIMUM SPREAD TOTALS (INPUT 5A) WILL BE CONSIDERED
TO DETERMINE IF ANOTHER TRADE HAPPENS.

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7 - IF THE CONDITIONS ARE MET THAT AN ADDITIONAL TRADE OCCURS, FROM TRADE ENTRY,
BOT WILL CONTINUE TO CALCULATE BOTH CALL AND PUT SPREADS MINUS CREDIT SPREAD
PREMIUMS UNTIL ONE SPREAD HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 6). WHEN THIS
HAPPENS, THAT SPREAD TRADE WILL BE REVERSED AT A LOSS.

8 – THE CALCULATION OF THE REMAINING TRADE’S SPREAD MINUS THE TRADE’S PREMIUM
WILL CONTINUE UNTIL EITHER THAT TRADE HITS X AMOUNT (NEGATIVE NUMBER) (INPUT 7)

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OR THAT THE SPREAD MINUS CREDIT SPREAD HITS A PROFIT TARGET (INPUT 8) OR IF BY
1552 EST (INPUT 9), ASSET PRICE IS IN BETWEEN OPTION TRADE’S STRIKE PRICE OR IS IN
JEOPARDY OF CLOSING IN THE MONEY, EXECUTE A MARKET TRADE TO MAKE SURE OPTION
TRADE IS CLOSED AND IS NEVER EXERCISED (LOSS CAN BE 0 TO SPREAD DIFFERENCE)

9 – REPEAT 6 THRU 8 UNTIL DAY ENDS

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