Closing two trades at the same time - stock and option?

Discussion in 'Order Execution' started by danjuma, Jan 27, 2018.

  1. danjuma

    danjuma

    Hello. I have two separate trades with Interactive Brokers. (1) 100 shares of GE currently at - $1,289, and (2) 1 contract of GE Jan 18 2018 30 PUT currently at +$1,014. I want to close both trades (for an overall loss, I know), but for both to close at the same time (but not at market) as don't want to risk one closing and one left open and exposed to any wide swings caused by an unexpected event. Is there a way I can do this (an order to close both trades at the same time at a specified price) on IB? Thank you
     
  2. truetype

    truetype

    Do you mean Jan2019? The Jan2018s expired.
     
    JackRab likes this.
  3. danjuma

    danjuma

    Sorry, yes Jan 2019.
     
  4. Why not hold on to that. You're not going to lose any more until 2019 on that position, and what if GE makes a convincing turnaround in that time? At this point, you basically hold a long-shot position risk free for almost a year.
     
    ironchef likes this.
  5. Sometimes, TWS' flexibility can be a little confusing.
    Unless I'm tick-scalping off of BookTrader, I trade off of Quote Monitor pages, and the individual contract lines.
    1) With GE and GE Jan2019 30 PUT on two available lines, put your cursor on an open line.
    2) Hit the COMBO button on the top ("Tool Bar"?) line. It should come out on the Leg-by-Leg tab -- if not,make it so.
    3) Drag-n-drop the GE -- it will come up as "Buy".
    4) Drag-n-drop the put, then change the operation from the default "Sell" to "Buy."

    5) The result will come up on the check screen with both a BUY and SELL operation -- and it will say (should say, if I've got this right),
    "To Sell, Sell 100 GE + Sell 1 GE put, etc etc etc."
    At that point, enter your sell order on your new COMBO contract line, and have at it. :)
     
  6. ironchef

    ironchef

    OP does have a positive delta (?) so is still subject to downside risk, but you made a very good point.
     
  7. 30 cent spread. 5-8 cents of intrinsic value. commission. He'll actually pay not to hold and hope.

    Also, those are some pretty attractively valued long-shot calls for the same reason. $100 would have a huge payoff here if GE really turned it around.
     
  8. danjuma

    danjuma

    Many thanks! That's what I was after :D
     
  9. danjuma

    danjuma

    I see your point. However, if GE keeps falling, and as the PUT nears expiration, will the PUT not start losing value at some point?
     
  10. danjuma

    danjuma

    Are you saying it's better not to hold and hope?
     
    #10     Jan 27, 2018