How to close a credit spread

Discussion in 'Options' started by traderwald, Jan 25, 2019.

  1. Hi,

    How to close a vertical credit spread ? When I do it on IB TWS - I right click on the position and click 100% then it puts that spread in the order book as a Sell.

    Should it be sell or a buy to close a vertical spread ?
     
  2. destriero

    destriero

    In IBTWS, you right mouse click and hit "close" which will bring up the order line. It's a debit so you'll click on the right column (ask). Adjust the price inside the spread and hit transmit. Say it shows 1.80 bid/ 2.00 offer; you click on the 2.00 price and choose your price.

    That's the foolproof method, but you can always just click on the price (ask) -> adjust price -> transmit.
     
  3. Robert Morse

    Robert Morse Sponsor

    If you find TWS confusing for options (I did), we offer LVX for our IB clients. https://www.lightspeed.com/trading-platforms/livevol-x/

    What I really like for heavy option uses is Silexx, which is a multi-broker platform. You can use it for our accounts at Wedbush or IB or both. Very easy to use. Simple COB ticket. You can create spreads from the Option chain, portfolio module or save spreads in favorites. That way you can bring them up later quickly. Who wants a demo of Silexx or LVX?
    http://help.silexx.com/modules/complex-order-ticket

    upload_2019-1-25_20-40-26.png
     
    Last edited: Jan 25, 2019

  4. Is this something I can get with existing IB account or would I need to raise a new Lightspeed account ? I presume it is new account required ?
     
  5. I am getting this when I click Close on a bull put credit spread. Why is it a sell instead of a buy, I do not understand.

    upload_2019-1-25_21-5-31.png
     
  6. Robert Morse

    Robert Morse Sponsor

    If you want to stay at IB as your clearing firm, and want LVX, that would require a new IB account with Lightspeed as your broker. If you just want to add Silexx to your IB account, you contract with CBOE Silexx directly. If you would like to move your trading to Wedbush Securities with Lightspeed as your broker and Silexx as your platfrom, you need to open a new account through Lightspeed.

    It is possible for your to have any IB account and one with us at Wedbush, and use Silexx to access both.