Hi All, On a simulator, I am presently selling out of the money Bear Call and Bull Put spreads. I would like to automatically get out of my trades when a spread goes in the money ie the point at which the stock price crosses into the area between the strikes of the spread. At present, I do this manually after the market opens. Is it possible to put in some form of order that will do this automatically, (eg set up a notional stock price stop order that would trigger a real buy spread order that would get me out of the my spread at present market values). If yes, could someone please advise me of the correct lingo to set up the trade. (I appreciate the above may sound like a loss making strategy, but itâs part of a larger strategy) All help would be greatly appreciated. Thanks in advance for all responses.
Some brokers offer contingent orders based on various conditions including stock price, option price and etc. So what you are looking for is called a contingent order. However, unless you want to trade at market the bigger problem is setting the appropriate limit price so that your order gets filled yet you don't killed on slippage.