- Interactive brokers - I like to build bigger hedged positions (a stock hedged by an option) in relative liquid stocks and the building is not time sensitive but I want to get the best possible price. As Options have the bigger spread I want to start to buy the option on the bid and the stock on the ask. I like to buy all volume I get on the bid of the options and if I have bought for example 5 options I like to buy 500 stocks immediately. For this I have tried the two following concepts without success: 1st approach: Peg order to Stk (with delta hedge as second order) As price I inputed the options bid price and the stocks ask price. This has not worked, the order was executed on moves (on the options price) against me and the peg was not moving up and down as expected. 2nd approach: Combination order under âCombinations â Options combosâ and then under strategy âBuy stk/option comboâ. This gives a combined price of the stockprice minus the options price (e.g. if the stock is $100 and the option .5 it shows 99.5, if I set a limit at 99.5 I do not get a fill). On this I can see the price trading through my limit but I do not get any fill. If for example for test reason I increase my limit dramatically I get a fill at some point (but not at the shown price). Can somebody help on this or recommend anything?
https://www.interactivebrokers.com/en/?f=/en/trading/orders/conditional.php Would this conditional order allow you to set a limit price on the option then set a an acceptable range(peg) for the underlying stock? I would think the underlying could be peggd by a percentage as well as dollar value. Possibly the above could be the 1st leg of a OTO order where the underlying is then bought at the ask . Ps. Press the arrows in the IB demo to advance. Where is the IB rep ? Did Bob111 scare him off.
eurusdzn, thanks for making your mind and your good answers. One of the problems of IAB might be that many of the reps do not understand what is going on and try to avoid written answers for that reason (due to possible legal claims). The money is made here on the option (e.g. to buy the option in the bid) because it has the bigger spread. To buy the stock is not a problem (with a delta hedge order) and can be done even on market because the stock spread is 1 cent most of the time. If I narrow the problem down it is basically a problem of buy an option in the ask. This sounds more easy that it is, if I try the pegged (to stock, where you specify the option price and the stock price and the delta value of 100 if you want to follow the moves of the stock. Negative delta values are not accepted by the GUI) order I find myself in wrong positions in my real account and I do not understand why. Does somebody know how to buy for sure at the bid (or with a difference of x cent to the stock)? many thanks for help