Forward roll EVERYTHING

Discussion in 'Order Execution' started by ammarmalhas, Mar 14, 2018.

  1. Hi All,

    I am looking to exercise the following "combination trade" in TDA ThinkOrSwim platform:

    Sell to Close 100 Call options QCOM, Jan 18 2019, Strike $50,
    Buy to Open 200 Call options QCOM, Jan 17 2020, Strike $70.

    What is the name of such a trade (if it is available) and how do I place it?

    I have used Diagonal trades to roll options strikes upwards and farther down in time but the Diagonal works for the same number of contracts only.
    Back/Ratio trades allow forward roll in strike, number of contracts but the same Expiry!

    Thank you.
  2. A roll like that is just a diagonal spread.
  3. Not really. A diagonal spread in TOS will not allow different number of contracts between Sell and Buy sides!
  4. Oh, missed the 2x contracts. That's ratio spread then. But with that many contracts, you'll probably do better with two orders anyway. If you don't use off-the-shelf option strategies, you usually have to find a market maker who is physically watching the book (as opposed to automated)--and you're going to pay more of the spread. If you break that into two orders, you'll have a standard diagonal presented to market which can be picked off by competitive algos, plus an even more liquid outright long.
    tommcginnis likes this.
  5. I believe you are right.
    Thank you for the advice.
    I am going to separate them into; a diagonal for the same amount of contracts then with the credit I get I will buy the other 100 (if I get enough credit). Thanks again.