Exercising a Long Option in IBKR Trader Workstation Tutorial
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- Äas pĆidĂĄn 2. 08. 2024
- Are you a seasoned trader looking to enhance your skills with advanced strategies? In this comprehensive tutorial, we delve into the fascinating world of simultaneous position closure using Interactive Brokers Trader Workstation. Join us as we demonstrate how to close both a long option and long stock position simultaneously by exercising a long option.
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đ Understanding how to efficiently manage your positions is crucial for successful trading, and combining the power of options exercise and stock position closure can give you a significant edge. Our expert trader will walk you through the step-by-step process, offering valuable insights and practical tips along the way.
đ What you'll learn in this video:
1ïžâŁ The basics of long options and their exercise mechanics.
2ïžâŁ How to determine the optimal time to exercise a long option and close the corresponding long stock position.
3ïžâŁ A detailed walkthrough of Interactive Brokers Trader Workstation, highlighting essential features for executing simultaneous position closure.
4ïžâŁ Understanding the impact of exercise on your overall trading strategy and risk management.
đĄ Whether you're a seasoned trader or just starting, this tutorial is designed to equip you with the knowledge and confidence to leverage complex strategies effectively. Closing both a long option and stock position simultaneously can be a game-changer, streamlining your trading process and potentially boosting your profits.
⏠CONTENTS âŹâŹâŹâŹâŹâŹâŹâŹâŹâŹ
0:00 Intro to executing a long option in IBKR TWS
1:02 Using the Strategy Builder in TWS
2:44 Quick way to Exercise a long option
đ Don't miss this opportunity to take your trading skills to the next level! Hit the play button now and master the art of simultaneous position closure using Interactive Brokers Trader Workstation.
đ Stay tuned for more expert-led tutorials and trading tips by subscribing to our channel and turning on the notification bell to never miss an update. Happy trading! đ
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Levi Woods
Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. I receive a small commission from the purchase of any item from using the links listed above. There are financial risks involved in taking on any monetary transaction that I discuss in my videos.
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Really cool video, very concise and it was exactly was I looking for. Thanks for sharing!!
Thanks!
Welcome!
Great, thank you. It works
You're welcome!
brutal video, so good
Thanks!
Cool...great info Levi. Thanks
Thank you :)
Great explanation Levi, easy to follow.
Glad you liked it
Thank you
You're welcome
Thank you. I really liked the video. Do you offer any coaching?
good stuff
Thanks!
@DrawbridgeFinance When you said long option are you referring to leap option? I wanted to know when swing trading and day trading, should be separate or if a separate account is required for swing trades. Could you please help me?
Any option that I own long can be exercised. These can be held in any account. Leaps are just longer dated (over a year) and they typically wouldnât be exercised.
Thank you @@DrawbridgeFinance
i have a question for you. if i have a individual LEAP and i write a call against (covered call) but separately, in case i get assign i am able to use the LEAP ? is IBKR detect my leap or whats happend once i get assign?
The contracts are always treated separately by the brokerage. In the event of a short call being assigned when I own a long LEAP call there are a couple of choices I could consider:
A. To exit the trade for profit: Buy back the shares at market value and then sell the long call. All positions would then be closed.
B. To get back into a covered long LEAP call position (if it makes sense): buy back the shares at market value and sell a new short call (usually longer dated and higher strike)
so if you exercise the option are you net short, or are did you have a long position that was covered with the put option?
In this case I was already long stock because I had been assigned a short out at a different strike.
@@DrawbridgeFinance thanks, I was long call options that doubled and couldnât get out premarket, I got lucky to get out at the open
If long put cost 7.5, stock is 10 then all we get is $10 by exercising. The position is still in a NET LOSS. Am I missing something here?
if I exercise options overnight does it automatically show up in my account? please help I am in the money big on a stock
I rarely am long options until yesterday. I bought the monthly Jan RTX 85 put ( 1 option only). My question is; do I have to buy 100 shares if I ever decide to exercise that position? Also; if on Jan 19 the stock is at 70 and I donât do anything is it automatically exercised by Fidelity for me? Thanks in advance.
I never rely on the brokers to automatically execute my long options. If they donât do it then it is my fault for not exercising my right or selling my long option. If the stock is trading below $85 the put will have value just before expiration. In this case itâs often not best to wait to expiration but to exit the trade ( by selling the long put) when the stock is at its lowest level. Say my assumption was that the stock was going to $70. If it hit $70 in November, I would close the trade and take my profits rather than waiting for it to go lower or hoping that it stayed low until expiration. In fact, with long options, the sooner the move, the better. Unless I was long the put to protect shares I already own, there is no reason to exercise this contract. Simplest transaction is just to sell the option once the underlying move has occurred.
Thanks for the response. @@DrawbridgeFinance
This is not a Covered Call (Buy Right Option), when you simultaneously buying a stock and selling a call option against it, correct? Secondly, do you know a simple and straight forward way to trade Covered Call without too many steps? Would the commission be free or less expensive than buying a stock, then selling a call option against it? Anyone know?
Itâs typical to pay a separate commission for both buying the stock and selling the call.
Hi I had a doubt suppose my long options at 4pm is 0.01 cent otm but after hours becomes ITM say 1 $ so will I get the profit ? How to exercise it? The same way u showed plz reply
You canât do anything after the market is closed. You may or may not make the money depending on the brokerage and the underlying. On cash settled options like SPX you will have a profit or loss depending on if you were long or short the option.
can this technique work with TOS?
It should
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I hope you're doing well. And great job on the post. Just wanted to kindly remind you that I sent you a message about a potential white label partnership opportunity and would really appreciate a response whenever you have a moment. Thanks in advance! đ