Is it possible to write options against an opened position of same long OPTION?

Ytony · Feb 19, 2019

destriero said:
Assuming that this is all occurring in the same IB account... no, the positions are distinct, but there is nothing from stopping you from selling the deferred contract which results in a short calendar (same strike, different exp) or a short diagonal (different strike and exp). You can effectively neuter your greeks, but it will book as two distinct positions. Greek-wise, you can essentially trade flat (risk).
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Yes, I'm assuming under a single IB contract.. OK this is what I think it will be. Thank you so much for the confirmation!

I don't understand why though, brokers should consider adding this functionality to make more trading potentials, why not?

destriero · Feb 19, 2019

Ytony said:
Yes, I'm assuming under a single IB contract.. OK this is what I think it will be. Thank you so much for the confirmation!

I don't understand why though, brokers should consider adding this functionality to make more trading potentials, why not?
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They are distinct positions. They are not fungible. You’re trading into a calendar spread.

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Is it possible to write options against an opened position of same long OPTION?

Ytony

destriero