How to Trade Options on NinjaTrader

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Category: Broker Guides | Author: Trading Brokers | Date: July 7, 2026

Trading options can be a powerful way to enhance your trading strategy, offering the flexibility to take advantage of price movements while managing risk. NinjaTrader is a popular trading platform that provides a wide range of tools and features for options trading. In this article, we will walk you through the steps on how to trade options on NinjaTrader, from setting up your account to executing trades.

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Step 1: Setting Up Your NinjaTrader Account

Before you can begin trading options on NinjaTrader, you need to ensure that your account is set up and properly configured for options trading.

1.1 Download and Install NinjaTrader

The first step is to download and install the NinjaTrader software. Visit the official NinjaTrader website, and download the platform. Follow the installation instructions to complete the process.

1.2 Open a NinjaTrader Brokerage Account

To trade options, you need to open a NinjaTrader brokerage account. The platform offers direct market access for futures and options trading. You can either open a live account or use a simulated account to practice your trades before committing real money.

1.3 Fund Your Account

Once your account is set up, you will need to fund it. Transfer the necessary funds into your trading account through a bank transfer or another approved method.

Step 2: Navigating the NinjaTrader Platform

Now that your account is ready, it’s time to familiarize yourself with the NinjaTrader platform. This section will help you understand the key components of the platform that are used for options trading.

2.1 Launch the NinjaTrader Platform

Open the NinjaTrader platform after installation. You will be greeted with a clean interface with a chart, order entry window, and other tools.

2.2 Configure the Market Data

To trade options, you need access to real-time market data. NinjaTrader offers various data feeds, such as Kinetick, which you can subscribe to for real-time data. Once subscribed, ensure that the data feed is properly connected to your NinjaTrader platform.

2.3 Add the Options Instrument to Your Market Watch

Before executing trades, you must first add the options instruments to your market watch. Navigate to the “Instrument Manager,” where you can add the underlying assets and their options. This is where you will access option contracts for the assets you’re interested in.

Step 3: Understanding Option Chains in NinjaTrader

An option chain is a listing of all available options for a specific underlying asset. It displays the expiration dates, strike prices, and premium values for both calls and puts. Here’s how you can access and interpret the option chain in NinjaTrader.

3.1 Access the Option Chain

From the NinjaTrader platform, go to the “Market Analyzer” or use the “Options Chain” window to display available options for a particular stock or ETF. The option chain will show all the available contracts based on your selected asset, including expiration dates, strike prices, and current option premiums.

3.2 Analyze the Option Chain

Once you have the option chain displayed, you can start analyzing the available contracts. The option chain will give you the following information:

• Strike Price: The price at which the underlying asset can be bought or sold.
• Expiration Date: The date when the option contract expires.
• Premium: The cost of buying the option.
• Open Interest: The total number of contracts outstanding.
• Implied Volatility: A metric showing the market’s expectations of future volatility.

Step 4: Placing an Option Trade on NinjaTrader

With the platform set up and your options instrument selected, it’s time to place an options trade. NinjaTrader offers multiple ways to execute trades, including through the SuperDOM, chart trader, or order entry window.

4.1 Using the SuperDOM

The SuperDOM (Dynamic Order Management) is one of the most powerful tools in NinjaTrader for placing trades. To place an options trade through the SuperDOM:

1. Locate the underlying asset’s futures or stock instrument.
2. Right-click on the price you wish to trade and select “Buy” or “Sell” for the option.
3. Choose the desired option contract based on strike price and expiration date.
4. Set your order type (limit, market, stop) and confirm the trade.

4.2 Using the Chart Trader

If you prefer to use charts to make your decisions, you can place trades directly from the chart:

1. Right-click on the chart where the trade is intended to be executed.
2. Choose the order type (market or limit).
3. Set your target price and stop-loss if applicable.
4. Confirm the trade execution.

4.3 Using the Order Entry Window

For a more traditional order entry approach, use the order entry window:

1. Select the option contract from the options chain.
2. Choose the action (buy or sell), and set your limit or market price.
3. Set your order parameters, such as quantity and duration.
4. Confirm and submit the order.

Step 5: Managing Your Options Trades

Once your trade is executed, it’s important to manage your positions effectively. NinjaTrader provides several tools for trade management, including stop orders, profit targets, and trailing stops.

5.1 Using Stop Loss and Profit Targets

You can place stop loss and profit target orders to automatically exit your position when certain price levels are reached. This helps you lock in profits or minimize losses based on your trading strategy.

5.2 Trailing Stops

NinjaTrader also allows the use of trailing stops, which adjust dynamically with the price movement. This is useful for protecting gains as the market moves in your favor.

5.3 Monitoring Your Positions

Use the “Position” window to track your current options positions. This window shows real-time updates on your profit and loss, open orders, and other important metrics.

Step 6: Closing an Option Position

Once your options trade reaches its desired outcome, you’ll want to close the position. You can do this in several ways within NinjaTrader.

6.1 Manual Exit

Simply open the options order entry window or SuperDOM, locate your open position, and click the “Close” button to exit the trade. This will sell or buy back the option contract.

6.2 Automated Exit

If you’ve set stop loss or profit target orders, NinjaTrader will automatically exit your position once the price reaches the specified level, reducing the need for manual intervention.

Step 7: Reviewing Your Performance

After completing your options trades, it’s important to review your performance. NinjaTrader provides a range of reporting tools that can help you analyze your trading activity.

7.1 Use the Trade Performance Report

Navigate to the “Account Performance” section to view detailed reports of your trades. This includes metrics such as total profits and losses, win rates, and average trade duration. Reviewing these reports can help you improve your trading strategy over time.

7.2 Analyzing Individual Trades

You can also review individual trades for insights. This can be done by examining the trade’s entry and exit points, the profit or loss on each position, and other related factors.

Conclusion

Trading options on NinjaTrader offers a comprehensive set of tools and features that allow traders to execute and manage options trades effectively. By following the steps outlined above, you can get started with options trading, analyze option chains, execute trades, manage positions, and track performance. With practice and a disciplined approach, you can utilize NinjaTrader’s powerful features to enhance your options trading strategy.

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