I have done buy write (buy shares, sell call) and sell write (short shares, sell a put) using IB's WebTrader. I have done option spreads using both platforms. But I cannot figure out how to do a buy write or sell write in IB TWS. If I go to "Strategy builder", I can add as many option legs as I want, but I don't see how to add stock legs.
How to do buywrite / sellwrite in IB TWS?
- Thread starter ET180
- Start date
The way I do it is to enter the underlying symbol in a quote row and then choose Combinations -> Option Combos. You might have to click the down arrow at the bottom of the popup to get it to show up. You can also right click on an empty row and select "Generic Combo."
Only a few exchanges support stock legs, and they charge higher fees. My experience has been that I get lower commissions and better execution buying a near-expiry DITM leg and then exercising it rather than including a stock leg directly.
Only a few exchanges support stock legs, and they charge higher fees. My experience has been that I get lower commissions and better execution buying a near-expiry DITM leg and then exercising it rather than including a stock leg directly.
Go to the Strategy Builder (it is usually a part of the Option Chain). Click on the Call that you'd like to sell, it should appear in the Strategy Builder area. Then press Ctrl+S to add the stock, which will become one of the legs.
(press Ctrl+S again to remove the stock, basically toggling)
You can also use Ctrl+D to delta-hedge. IB will calculate the number of shares you'd need to buy or sell to hedge.
(press Ctrl+S again to remove the stock, basically toggling)
You can also use Ctrl+D to delta-hedge. IB will calculate the number of shares you'd need to buy or sell to hedge.
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Or skip the fancy order and just short the put instead of buy-write (or short call instead of sell-write). Same exposure, much more margin efficient.
Thanks, Ctrl+S in strategy builder seems the quickest since I'm usually putting my order in there anyway.
Absolutely. I was originally short some deep ITM GLD puts. Part of the position got assigned 5 months early. So I wanted to sell back the assigned shares and short the same strike and expiration puts again. I put the trade back on for a 0.17 credit over the intrinsic value of the same puts that got assigned. Wish I would get assigned my puts back everyday and then put the same trade back on for a net credit above my previous position.
Absolutely. I was originally short some deep ITM GLD puts. Part of the position got assigned 5 months early. So I wanted to sell back the assigned shares and short the same strike and expiration puts again. I put the trade back on for a 0.17 credit over the intrinsic value of the same puts that got assigned. Wish I would get assigned my puts back everyday and then put the same trade back on for a net credit above my previous position.