This guide walks you through the process of creating a calendar spread using the Options AutoTrader. You will learn how to set up a custom strategy, choose symbols, define expiration dates for each leg, select strike prices, and configure trade entry and exit rules. The guide also covers setting your AutoTrader’s budget and reviewing your settings before finalizing the setup. By following these steps, you’ll be able to automate your calendar spread trades efficiently.
Step 1: Access the Dashboard:
Start by going to the dashboard page.
Step 2: Create an AutoTrader:
Click on “Create an AutoTrader.”
Then click “Create an AutoTrader” again to begin the process.
Step 3: Select Custom Strategy:
Navigate to the “Custom Strategy” section.
Step 4: Add a Trade License:
Since a calendar spread involves two legs, add an additional trade license.
Step 5: Choose Symbol:
Select the symbol you want to use for the calendar spread.
Step 6: Set Expiration:
For a calendar spread, you’ll need to set different expiration dates for each leg.
Choose your days until expiration, ensuring the first expiration date is set under the first leg and the second under the second leg.
Step 7: Pick Your Strike Prices:
Set the strike prices for your calendar spread. A negative number indicates selling an option, while a positive number indicates buying an option.
For example, you may choose a 10 Delta for the first leg and a 30 Delta for the second leg, but this can vary based on your strategy.
Step 8: Define Expiration Dates for Each Leg:
For the first leg, set the expiration to 45 days until expiration (DTE).
For the second leg, set it to 90 DTE.
Step 9: Choose Option Type (Put or Call):
Select whether you are using puts or calls for the calendar spread.
If you want to use calls, make sure to change each leg’s option type to “Call.”
Step 10: Define Trade Frequency:
Set how often you want the AutoTrader to enter the trade (once a week, multiple times a week, etc.).
Specify the days and time you want the trades to occur. You can also choose advanced entry rules, such as using a trading view indicator for entries.
Step 11: Set Profit, Loss, and Early Exit Rules:
Define your take profit, stop loss, and early exit rules. This will tell the AutoTrader when to close trades for profit, loss, or early exit based on your strategy.
Step 12: Advanced Rules (Optional):
If desired, select other advanced rules for trade entry or management.
Step 13: Save and Continue:
Click “Save and Continue” after defining the entry and exit rules.
Step 14: Set Budget for AutoTrader:
Specify how much money you want to allow the AutoTrader to use. For example, if each trade requires $500 and you want five trades, the bot should be set to handle at least $2,500.
Step 15: Review and Confirm Settings:
Review the metrics and settings for your AutoTrader, such as the calendar spread setup and other trade rules.
Step 16: Authorize and Save:
If everything looks good and you agree with the rules, click “Authorize” and then “Save and Continue.”
TERMS OF SERVICE: Please be aware that continued use of the Options Auto Trader is subject to our Terms Of Service. If you have any questions or wish to review these terms, feel free to visit the website.