l am having trouble finding an order that pegs the mid point +/- offset, for option combo orders. Does IB have one? I thought snap to mid was it, but found out its not dynamic. instead stays same as the underlying moves. Thanks
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IB have dynamic pegging mid price order with +/- offset for combos
- Thread starter IBRex&me user
- Start date
l am having trouble finding an order that pegs the mid point +/- offset, for option combo orders. Does IB have one? I thought snap to mid was it, but found out its not dynamic. instead stays same as the underlying moves. Thanks
Only for single options, not combos. Nothing like you described at IB for combos.
Schwab acquired a company that owned a patent on similar Walk Limit Orders (not exactly the same but may have additional parameters, I haven’t used it)
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a helpful member of Elitetrader informed me of https://www.interactivebrokers.com/en/index.php?f=14735
thing is, does pegging to midpoint volatility, translate to ~ midpoint in bid ask spread when buying or selling? pegging to volatility seems a bit abstract?? opinions.
thing is, does pegging to midpoint volatility, translate to ~ midpoint in bid ask spread when buying or selling? pegging to volatility seems a bit abstract?? opinions.
Actually this may work since IV is derived from option pricing. Though I'd also prefer to specify my order parameters in dollars and cents, including the limit price and offset amount.
Trading purely on vol may need some getting used to, but could be worth trying.
Curious about others' experience with these order types.
Trading purely on vol may need some getting used to, but could be worth trying.
Curious about others' experience with these order types.
interested if you also set orders on combos based on conditional orders being satisfied? eg if SPY > 340, close a combo. l frequently do trades like this, trying to guesstimate the price the combo will be at, l believe risk navigator can guesstimate this figure for you too. obviously l can choose market order, but this will ensure a poorer price for the trade. how do you do it? or suggestions?Actually this may work since IV is derived from option pricing. Though I'd also prefer to specify my order parameters in dollars and cents, including the limit price and offset amount.
Trading purely on vol may need some getting used to, but could be worth trying.
Curious about others' experience with these order types.
interested if you also set orders on combos based on conditional orders being satisfied? eg if SPY > 340, close a combo. l frequently do trades like this, trying to guesstimate the price the combo will be at, l believe risk navigator can guesstimate this figure for you too. obviously l can choose market order, but this will ensure a poorer price for the trade. how do you do it? or suggestions?
Personally I don't set orders on combos based on conditional orders being satisfied, because I still wouldn't be able to estimate reasonable combo price. But if you have time to run the risk navigator, then you could just as well look at the current mid price of your combo and simply sell it at the mid price, or set a future target somewhat higher, then later adjust it lower when you really need to get out.
Also, after some time spent trading, you may be able to set some specific target like x% profit. Any other scenarios could be traded manually until you're able to estimate those exit targets.