# Options Strategy

> Build a TradingView strategy that buys calls and puts from your alerts: how Direction decides what each alert does, how the contract is picked, sizing, exits and broker differences.

*Source: https://tradelabs.org/docs/tradingview/options*

An options strategy buys single calls and puts. The alert only says the ticker and buy or sell. Your strategy picks the contract, how many to buy, and when to get out.

**Brokers:** Interactive Brokers, Tradier and Robinhood. Schwab does not take TradingView options trades.

## What each alert does

**Direction** decides it. These two setups behave the same on every broker that supports them:

- **Calls** is the simplest: bullish only. A buy alert opens, a sell alert closes.
- **Both** trades both ways on IBKR and Tradier, flipping from calls to puts and back.

> **Heads up**
>
> **Puts** works differently by broker. On IBKR a sell alert buys the put and a buy alert closes it. On Tradier and Robinhood it is the other way round. If you want puts from a sell alert everywhere, use **Both** on IBKR or Tradier, or a [Spreads strategy](/docs/tradingview/spreads/) with **Sell alert opens** set to Put debit.

## Build it

1. Create your alert in TradingView and prepare it in the app. [How TradingView Trading Works](/docs/tradingview/) shows how.

2. On **Strategies**, click **New strategy**, and set **Source** to **TradingView**.

3. Set **Name** to your alert's name and **Instrument** to **Options**. Choose IBKR, Tradier or Robinhood on the **Brokers** tab.

4. Set **Direction** to **Calls** or **Both**.

5. Set **Ticker** to your chart's symbol, or `ALL`.

6. Pick the contract with **Default expiration** and **Strike position** (below).

7. Set the size, a stop loss and a take profit.

![The options fields of a TradingView strategy](/docs-assets/app-tv-options-editor.png)
*Direction, order settings, expiration and strike position for a QQQ strategy on Tradier.*

## Picking the contract

The alert never names a strike or a date. They come from two settings, read when the alert fires.

| Setting | Choice | Result |
| --- | --- | --- |
| Default expiration | **0DTE** | Expires today |
| | **Weekly** | About 7 days out |
| | **Monthly** | About 30 days out |
| | **Friday** | This Friday's contract |
| | A number | That many days out |
| Strike position | **At the money** | The strike nearest the price |
| | **Out of the money** | Cheaper, needs a bigger move |
| | **In the money** | Costs more, less time decay |

## How many contracts

Under **Sizing**, set **How to pick the trade size** to **Fixed size** and **Default quantity** in **Contracts** (`2` buys two) or **Dollars** (`$500` buys as many as $500 pays for). A sell alert closes what is held, whatever this is set to.

## Order settings

| Setting | Choose | Why |
| --- | --- | --- |
| Entry | **Limit**, priced at **Ask** | Fills fast without paying through a wide market. |
| Exit | **Market**, or Limit on Robinhood | A limit exit that does not fill leaves you in the trade. |
| Time in force | **Day** | An unfilled order is cancelled at the close. |

> **Note**
>
> Robinhood has no market order for options. The editor only offers Limit there, priced to fill.

## Getting out

Set **Stop loss** and **Take profit** under **Risk management**. They close the option on their own, with no alert needed. A sell alert (with **Calls**) or the opposite alert (with **Both**) closes it too, whichever comes first.

## Repeat alerts

Two buy alerts in a row buy twice on **Calls**, unless **Double-down protection** under **Protections** is on. Turn it on to hold one position per ticker. On IBKR with **Both**, a repeat buy closes the call and buys a fresh one.

## Test it

1. Set **Default quantity** to `1` contract, or use a paper account.

2. Fire the buy alert. **Activity** shows the alert, the contract picked, the order and the fill.

3. Fire the sell alert. With **Calls**, the call closes. With **Both**, the call closes and a put opens.