Buying an option strategy "at once" and minimize spread: is it possible? - futures io
futures io futures trading



Buying an option strategy "at once" and minimize spread: is it possible?


Discussion in Options

Updated by Bookworm
      Top Posters
    1. looks_one Bookworm with 1 posts (0 thanks)
    2. looks_two emini2000 with 1 posts (0 thanks)
    3. looks_3 Quick Summary with 1 posts (0 thanks)
    4. looks_4 Dudetooth with 1 posts (0 thanks)
    1. trending_up 706 views
    2. thumb_up 0 thanks given
    3. group 3 followers
    1. forum 4 replies
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Buying an option strategy "at once" and minimize spread: is it possible?

(login for full post details)
  #1 (permalink)
Moscow (Russia)
 
 
Posts: 6 since Jun 2015
Thanks: 0 given, 0 received

Suppose I want to buy an option strategy consisting of, let's say, 4 legs (a butterfly, for example).

1) Is it possible to place an order for the whole strategy at a certain price? Let's say, I am ready to buy the butterfly for 10 dollars.

2) Or do I need to buy / sell the individual options and "pay a spread" each time?

So basically my question is whether it is possible to minimize the spread cost when buying a complex option strategy.

Thank you.

Reply With Quote

Can you help answer these questions
from other members on futures io?
Horizontal Line Indicator
Platforms and Indicators
T​​​​​​radestation datafeed (real time and historical) to NT8
NinjaTrader
How to place NT8 indicator output into a grid, under each bar?
NinjaTrader
IB Bracker Order
Platforms and Indicators
EQIX - Digital REITs - any experiences?
Stocks and ETFs
 
 
(login for full post details)
  #3 (permalink)
Steubenville Ohio
 
Experience: Intermediate
Platform: OX, OEC, RJO
Trading: Options on Futures
 
Posts: 264 since Sep 2012
Thanks: 30 given, 272 received


It is possible, but dependent upon the broker and/or platform you are using. I know OptionsXpress will allow you to enter complex spread orders like butterflies as a single limit order.

This will help you get in at the price you want (minimizing slippage), but could make it more difficult if the market isn't very liquid. There are times where I will place individual orders for each leg rather than a spread order if I need to get a fill quickly.

Hope this helps.

Reply With Quote
 
(login for full post details)
  #4 (permalink)
Atlanta GA USA
 
 
Posts: 265 since Aug 2013
Thanks: 67 given, 244 received

You can do it with TD Ameritrade and I use the Thinkorswim platform. And it does minimize commissions.

Reply With Quote
 
(login for full post details)
  #5 (permalink)
New York, NY
 
Experience: Advanced
Platform: TOS
Broker: TD Ameritrade
Trading: Equities and options
 
Bookworm's Avatar
 
Posts: 168 since Apr 2010
Thanks: 65 given, 155 received

I trade butterflies and condors as a single order through IB all the time. Option Trader has built in strategies and there is a Strategy Builder for creating other complex positions with up to 4 legs.

Reply With Quote


futures io Trading Community Traders Hideout Options > Buying an option strategy "at once" and minimize spread: is it possible?


June 13, 2015


Upcoming Webinars and Events
 

Getting Comfortable with Price Action Patterns w/Earn2Trade

Aug 4
 

Live Video Panel: Ask Me Anything w/Ironbeam Brokerage

Aug 6
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts