I'm new to IB (Interactive Brokers) and have a few questions for US stocks and options trading: 1,How can I place an order before the market opens to ensure I can quickly sell my long put option after the market opens? Many options tend to drop rapidly right at the open. 2,OPG (Opening Price) order for options: If I place an OPG order for an option before the market opens, will it not be executed? 3,Stop market order: If I set a stop market order with a -30% stop loss before the market opens at 9:30 AM, will it participate in the auction after the market opens? If the option opens at -50%, will my stop order trigger and execute at around the market price of -50%? 4,Limit order: If I place a limit order to sell at -50% before 9:30 AM, and the option opens at -20%, will my order be filled at -20%? Thank you all! I apologize if my questions aren't very clear.
I'm no options expert (I am often asking other members to explain options to me) but seeing as no one else has responded: Placing an Order Before Market Open to Sell a Long Put Quickly You can place a Limit Order or Marketable Limit Order before the market opens. Market orders for options are not allowed in pre-market or after-hours. If liquidity is a concern and you want to ensure a fast execution, a limit order at a reasonable price (not too far from the expected open) is a good approach. OPG (Opening Price) Order for Options OPG orders are only executed during the opening auction. If the option doesn't participate in the auction or there's no matching order, your OPG order will not be executed. OPG orders for stocks are common, but for options, execution can be unreliable. Stop Market Order Before Market Open Stop orders are not active during pre-market or the opening auction. At 9:30 AM, your stop order will become active but will only trigger if the option price hits the stop level. If your stop is set at -30%, but the option opens at -50%, your stop order will trigger at the open and execute around the market price (-50% or worse). Limit Order Execution at Open If you place a limit order to sell at -50% before 9:30 AM, and the option opens at -20%, your order will be executed at the best available price, which in this case is -20%. A limit order only ensures you don’t sell for worse than your limit price, but if the market gives you a better price, you’ll get it. Hope that helps.
Thank you so much! Your answer is extremely helpful! I have been looking at online information about IB for the past few days. 1, Before the market opens and after the market closes, there are no market orders, only limit orders. 2, The OPG (Opening Print Order) does indeed exist. In the absence of a competitive auction, this type of order is useless. 3, A "Stop Limit Order Execution at Open" might be the best choice, and I will give it a try! I will conduct some tests using TWS in the next few days. Wait for my feedback!