TDA automated option closing order


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

  1. Take profit when premium drop to below certain price and close out the bups option trade
  2. 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
  3. 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.


Penny Increment Options watchlist on TDA



Recently, at local option gathering group, we were discussing using TDA scan to identify stocks to play options. A friend ask for me for any good watchlist. I recommended them to use penny increment options from TDA platform that provide optimal price and  liquidity for option.




Option Strategy : Earning Play

20150320 Ebix breakout

This is a classic breakout after news of positive earning. The moment the breakout happens, it shot up 20% and will hoover back around 15% but will not drop to the previous day closing price. Recommended a few option kaki to sell put at 25 and 26 for roti prata premium of about 0.4% ROI in 7 days (better than bond or bank interest rate).

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