Hi, I had put on a debit spread in SFIX yesterday; the position is significantly profitable now after ER, but the stock has moved so much in favour that I don't have sufficient funds available to square the short leg of the position before selling the long leg. What does one do in such a situation? The broker is IBKR. Thanks!
Pretty much have to exit it as a spread both legs at the same time. Only way to avoid it as far as I know.
Hi, thanks. I focused on the "close the whole thing" part of your reply, and discovered that TWS has a "close as a strategy" option for this kind of trade. I have submitted the order, but it isn't showing up in my "orders" panel. Is that normal?
So, the combo closing out order is showing up in the "pending" tab on TWS, and I guess once the requisite bid/offer that match my spread limit order present themselves, the system will convert each leg into an order and transmit. Until today I didn't know one could close out spread positions like this, so thanks for that
Pending means not sent yet. You want the trade to be active, i.e. sent to the exchange and getting filled if/when your limit price is reached.