Hello, I am wondering if there is any software available that will allow you to automatically buy an option if the underlying reaches a certain price? For example: Stock XYZ is currently trading at $18. If the stock price reaches $19, I would like the software to automatically buy a Dec 20 Call at the market. If there isn't any software to do this then I guess my only other options are: 1) Program it myself (e.g., using the API for Interactive Brokers) 2) Use a broker to both monitor the market and execute accordingly Any thoughts and/or suggestions would be appreciated... Thanks, -SleepingGiant
It's called a contingency order. Many brokers have them and even on electronic platforms. Basically you would put the order in as buy dec 20 call at mkt if stock is 19. It's actually pretty common. In fact you can even put in all or none, limit orders and stop orders.
Check Preferred Trade and OptionsXpress - I believe their order entry screens allow option stop orders contingent on the underlying's price.
IB has this as well. We call it conditional orders. It is simple to use and it supports and/or conditions. Let's assume you want to buy an option, set it up with a price or as a market order. before submitting, right click on the line and choose make conditional. From there just fill in the fields, close the box and submit the order.