Conditional Orders can be a fantastic tool for Options traders. In fact, I’d go a bit further and say that every Options trader must master them.
Conditional orders get triggered when a certain “condition” is satisfied. Examples are -(1) If the SPX goes above 1700, then execute the order or (2) If the SPX price is above 1700 and the RUT price is above 1000, then execute the order.
As you can see, we can put several conditions to the order. The biggest advantage is that you can set your conditional orders, and not have to monitor the markets all the time to see if you need to adjust your position. Now some of the capabilities of Conditional orders are dependent upon each individual platform, and as usual Thinkorswim has some of the best features.
This video covers some of the features and best practices for the use of Conditional orders.