Custom Conditional Order: Close Options at Mid-Point based on Stock Price

choskin

New member
At this moment I have been setting alerts and closing option orders manually. Closing them out at mid-point

Is there a way to close my options order at mid-point based on, if price hits my stop order?

Instead of selling my order at the worst possible fill?
 
I will be in trades few days to a few weeks at most.

when I get into a trade I already have a target and exit set in place once the order is triggered to be entered.

My question is for my stop, I’d like it to trigger at MARKET based on the stock price. However get me out at limit order mid-point on the options combo. Instead of buying or selling at the bid or ask.(worst possible fill)

slippage can be huge when trading the indices and certain equities.

Hopefully this helps
 
Last edited by a moderator:
I'll break it down.

Lets say SPY is trading at $422

I get into a Vertical Credit Spread - Selling a 20 Delta Put / Buying a 10 Delta Put = 100 wide vertical
The bid / ask spread for this option is 10.10 - 12.90 (2.8 spread) and mid-point is 10.74.

In TOS when I create an order I select ADVANCED ORDER: 1st triggers OCO
I then setup my Target LIMIT Order - 5.37
then I setup my STOP - which normally I set it up to be 21.48

What I want to do is instead of creating my STOP order like above. I'd like it to be based on the Underlying Price.
I see support at 414. (as an example) and I want it to AUTOMATICALLY get out of the trade if the underlying hits 414 or below.

Then whatever the options bid/ask spread is to automatically select the options mid-point to get out of the trade.
Because at this moment on a market order like this chances are I will always be filled at the worst possible price on a options spread.

Using Daily, Weekly, Monthly Charts

Hopefully this makes sense?
 
Last edited by a moderator:
I am assuming this is a script that needs to be created where

1. When underlying Price hits my STOP Loss
2. It will find the BID / ASK Spread on my options combo lets say 2.80 is the spread
3. Automatically set a Stop Limit Order for it to get me out at 1.40 from the BID

Reducing down the slippage.

This is not something I could find that is built into TOS. I believe this has to be a custom script.
 
Last edited by a moderator:
Did you ever find a solution to this setup? I'm trying to do something similar. I just want to close my option when the underlying price is greater than or less than the value I designate. Can't seem to figure it out. And the 'estimated price' in the order entry screen is rarely accurate.
 
Last edited:
Did you ever find a solution to this setup? I'm trying to do something similar. I just want my close my option when the underlying price is greater than or less than the value I designate. Can't seem to figure it out. And the 'estimated price' in the order entry screen is rarely accurate.
Did you know that clicking on a member's avatar will allow you to see when a member was last seen on the uTS forum? @choskin has not been seen in a while. :(

I don't trade options but thought maybe you could Frankenstein some code from this thread??
https://usethinkscript.com/threads/stop-loss-conditional-order-on-bid.8029/
 
Did you know that clicking on a member's avatar will allow you to see when a member was last seen on the uTS forum? @choskin has not been seen in a while. :(

I don't trade options but thought maybe you could Frankenstein some code from this thread??
https://usethinkscript.com/threads/stop-loss-conditional-order-on-bid.8029/
Thx MerryDay, it was an old thread but I thought it was worth a shot to ask since the OP was trying to solve the exact same conditional requirements I am. Oh and thanks for the link. I'll check it out and might need to learn a bit of thinkscript if nobody else has scripted a solution yet. Have a great weekend!
 

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