Complex options strategies: when it comes time to close out the trades

[Doobs789]

How to book the profits on a complex trade where the profit is minimal. I can see from fiddling around in TOS that there are ways to close out the order in custom parts to reduce the risk of not being able to close out everything simultaneously, but not completely eliminate it. This obviously changes depending on the amount of debit spreads that have been traded. I suppose what I'm asking is if there is a way (in TOS) to close out the original custom 4 leg spread (the original butterfly + 1 call), along with the debit spreads at the same time (have it considered as a "6 leg spread" to be closed as one piece).

In TOS, when you pull up an order ticket there is a drop-down for "advanced order." The default is for a single order. If you click in that box you will see other order types. While I have never used it, the "blast all" option may be appropriate for your case.

 

[shooter]

Maybe a last resort but you can take some positions off and delta hedge the others, which will buy you some time to take those positions off separately.

i.e., close the butterfly, delta hedge your vertical so your p/l on it will be flat for awhile (and, considering its SPY, you can adjust deltas without worrying about spread/slippage), and then work the vertical order. Once the vertical is closed, take off SPY delta hedge. Ofcourse that has its own risks in case of an event (say, flash crash 2010, all of a sudden your SPY position would become the risk), and you'll have to babysit everything. But, it's an option. If it's SPY or something else very liquid, you won't have to wait that long for the vertical to close out slightly off of midprice anyway.

 

[darkshogun]

In TOS, when you pull up an order ticket there is a drop-down for "advanced order." The default is for a single order. If you click in that box you will see other order types. While I have never used it, the "blast all" option may be appropriate for your case.

Thanks. I've seen it and I've wondered about it. I assumed it was merely a method to initiate multiple orders, but not necessarily meaning that they have to all be filled at the same time. I'll be asking them about it.