It is easy to automate the closing order by doing simple programming on your own. Below are some of the scenario to close option orders.
Closing a Bull Put spread (bups) order
- Take profit when premium drop to below certain price and close out the bups option trade
- If market price reach the sell leg price, can close out the bups order with limit the loss to a certain amount
- Beware of this as sometime the market does not give you this limit premium that you requested especially when volatility exploded and the premium may not be filled even when it is triggered.
- Can change to market premium to ensure closed out
- If price drop to or close to the sell leg price, trigger rollover with some a limit premium (also depend on market conditions when it is triggered)
In fact, it is so flexible and I can program the above three scenario or more (include adjustment) into a single closing order so that I don’t need to stay awake to monitor the US market when the timezone is not the same.