Interactive Brokers: A Guide to Using Option Chains in IBKR Desktop

Learn how to navigate and customize the Option Chains feature in IBKR Desktop. Explore real-world tips for trading options, analyzing strategies, and optimizing your trading setup!

When I first started using Interactive Brokers (IBKR) Desktop to trade options, I was immediately drawn to the Option Chains feature. But, at first, I had no idea how to maximize it to fit my trading strategy. I felt like there was a world of opportunities I wasn’t tapping into. Over time, I figured out the ins and outs of Option Chains, and now I’m here to share everything I’ve learned.

Whether you’re new to options or looking to level up your game, mastering IBKR’s Option Chains will give you the flexibility and control you need to make informed decisions. From customizing the display to building complex strategies, this guide will walk you through it all.

[LEARN MORE AT INTERACTIVE BROKERS]

Key Takeaways

• Use the Tabbed and List Views to switch between expiration dates quickly.
• Customize the option chain display to match your trading style.
• Build multi-leg options strategies using the Strategy Builder.
• Quickly place orders using rapid order entry and adjust order details.
• Mirror your option chain columns for a streamlined experience.

1. Accessing the Option Chains

When you open IBKR Desktop, navigating to the Option Chains is a breeze. By using the Quote window, simply click on the Option Chain tab, and you’re good to go. It’s the best way to access options for the stock you’re analyzing.

But here’s a tip that I wish I knew earlier: when you enter a stock into the input field at the top left corner of IBKR Desktop, make sure you select “Options” before hitting Enter. This ensures you’re viewing options for that specific stock, not just the stock itself.

Here’s a link to a video for a more visual explanation.

2. Tabbed View vs. List View: Choosing the Right Display

By default, Option Chains in IBKR Desktop are displayed in Tabbed View, which is pretty handy when you want to see options for different expiration dates. In this view, calls are shown on the left side, puts on the right, and the strike prices are displayed in the middle. But what if you need a bit more flexibility?

Switching to List View (which is just a click away from the gear icon) shows all the expiration dates stacked vertically, with the nearest expiration at the top. The cool part? You can expand or contract each expiration to view only what you need. Personally, I find List View to be much easier when I need to analyze several expiration dates at once.

Learn more at IBKR Campus with this lesson.

3. Customizing Your Option Chain Display

One of the first things I did when using IBKR’s Option Chains was personalize my display. You can customize everything from the type of options displayed (calls, puts, or both) to the number of strike levels shown.

To customize, just use the Strikes dropdown to adjust the number of strikes you want to view. You can even adjust this display to show strikes based on absolute numbers or as a standard deviation from the current stock price. For instance, if you’re interested in a wider range of strikes or specific ones closer to the stock’s current price, you can tweak that easily.

---

4. Using the Strategy Builder: Building Multi-Leg Strategies

Here’s where things get exciting. IBKR’s Strategy Builder lets you create complex, multi-leg option strategies like spreads, straddles, and condors. This is one of my favorite features because it automatically calculates the performance profile and scenario analysis of your strategy, so you can visualize potential outcomes before you execute.

Let’s say I want to build a short straddle strategy. Once I select my options, IBKR will automatically populate the Strategy Builder panel with the legs and display the performance metrics, like break-even points. The best part? I can quickly convert the strategy to a long straddle by reversing the direction of each leg. It’s fast, efficient, and extremely helpful when trying to optimize multi-leg setups.

5. Configuring Option Chain Columns to Match Your Needs

IBKR offers plenty of customization when it comes to the columns you see in the Option Chains. You can display up to 10 fields, such as implied volatility, delta, or open interest.

To configure, click the gear icon at the top right of the Option Chains window. From there, you can drag and drop columns to reorder them, or remove columns you don’t need. I use this feature a lot to keep my workspace clean and focused on the metrics that matter most for my trading strategy.

Pro Tip: If you’re trading more than one type of option, like calls and puts, you can mirror the columns. This keeps the layout uniform, so you won’t have to jump back and forth between the two sides of the chain. Just select the mirror option from the icon next to the Strategy Builder toggle.

6. Rapid Order Entry for Faster Execution

One thing that really sped up my trading process was learning how to use the rapid order entry feature within the Option Chain. If you hover your mouse over the Bid or Ask price of an option, a red or blue border will appear, respectively. Clicking on the Bid creates a sell order, while clicking the Ask creates a buy order.

You can adjust the order directly in the Order Entry panel, where you can modify quantity, price, and order type. It’s fast, and since I often find myself in volatile markets, this feature has been a lifesaver in executing my trades quickly and efficiently.

Pro Tip: Use the Advanced expansion arrow at the bottom of the order ticket for additional options, including algorithmic trading tools. It’s perfect for advanced traders who want more control over their orders.

Our Take: Get Comfortable with IBKR’s Option Chains

Mastering the Option Chains feature in IBKR Desktop is a game-changer for any trader interested in options. The ability to customize your display, build strategies, and execute trades quickly can help you stay ahead of the competition.

From the simple steps of viewing calls and puts to the more advanced strategy building, IBKR makes it easy to tailor the Option Chains tool to your needs. Don’t be afraid to experiment with different strategies and customizations—after all, this is your trading platform!

So, get out there, explore the tools, and make those trades smarter!

To dive deeper into all things IBKR, click here to explore more articles!

For the latest investment promotions and bonuses, check out our comprehensive list here: Best Investing & Brokerage Bonuses.