Here is a prime example of how thinkorswim can be used to plan for all of our contingencies in our trade.
First we see a strong up trending stock that is bounce up from support. Our technical analysis leads us to believe that this stock will move to $62 before earnings. However, we will only allow the stock to fall to $57. If it goes any lower we will exit the trade because it will be less likely we will reach our target price before earnings.
Due to the volatility associated with that news announcement we definitely do not want to hold thru the announcement. Instead we will set up the trade to close out the day before earnings are released.
If everything is right with our order the final screen should look just like this:
Our first contingent order will sell the stock before the earnings news comes out.
The second contingent order will get us out of the trade any time the stock trades above $62 or below $57.
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