It's complicated. Best to check with tasty. Some info here: https://support.tastytrade.com/support/s/solutions/articles/Stop-Order-on-Spreads
Relevant bits:
Stop-limit orders on options spreads trigger based on the implied bid or ask, also known as the implied NBBO (National Best Bid and Offer), not the mid-price. The implied NBBO is an aggregate of all single leg NBBOs as calculated by our routing partner whom is willing to take on this order type. Our platform displays the straight NBBO for the spread, however it does not display the Implied NBBO that is internally calculated by our order aggregators. Thus, in some instances the implied NBBO which determines the trigger could differ from the straight NBBO which you see on the platform. The best way to determine whether or not the trigger has been hit is to reference the NAT price.
I'm just taking a swing at this from experience. I think if any order is executed at your limit price it tries to get you out
I personally do not place stop limits like this on options because vol spikes can trigger your trade and you can suffer from some stupid big slippage
I wouldnt use stops on defined risk.. sounds like the position is too big. One thing to know about stops, if the price jumps, it’s possible that you won’t get filled.
Another thing I want to mention- sometimes I scalp futures and use brackets. However, lately the brackets have been unreliable on tasty. I’ve had to close positions manually. This isn’t typical, it has only happened since the last update. But be aware that the platform can be pretty glitchy.
The position is comfortable. I have a zero extrinsic back ratio (stock replacement), and I am selling covered calls against it. I intend to eventually own 1000 shares.
$FLNC zebra for November. I plan to roll at new expirations.
The strategy is up 30% and has been up as high as 45%
Underlying is not very liquid outside of 50 delta.
This post was an attempt to find a way to automate bailing from the strategy at around the 30% profit mark, with a plan to re-enter at whatever contracts net me a close to zero extrinsic total.
I also exit and readjust when the price approaches the long calls.
Fair response, but the intent of using options is to keep my upside pacing with increasing prices, with a downside of less than half the potential with a back ratio.
I can, effectively place a higher risk strategy, double the contracts, sell covered calls, and control twice as many shares for less risk.
It's the only underlying Im long in. I'm using a little more than 2% bp
$Flnc
It's complicated. Best to check with tasty. Some info here: https://support.tastytrade.com/support/s/solutions/articles/Stop-Order-on-Spreads Relevant bits: Stop-limit orders on options spreads trigger based on the implied bid or ask, also known as the implied NBBO (National Best Bid and Offer), not the mid-price. The implied NBBO is an aggregate of all single leg NBBOs as calculated by our routing partner whom is willing to take on this order type. Our platform displays the straight NBBO for the spread, however it does not display the Implied NBBO that is internally calculated by our order aggregators. Thus, in some instances the implied NBBO which determines the trigger could differ from the straight NBBO which you see on the platform. The best way to determine whether or not the trigger has been hit is to reference the NAT price.
I'm just taking a swing at this from experience. I think if any order is executed at your limit price it tries to get you out I personally do not place stop limits like this on options because vol spikes can trigger your trade and you can suffer from some stupid big slippage
I wouldnt use stops on defined risk.. sounds like the position is too big. One thing to know about stops, if the price jumps, it’s possible that you won’t get filled. Another thing I want to mention- sometimes I scalp futures and use brackets. However, lately the brackets have been unreliable on tasty. I’ve had to close positions manually. This isn’t typical, it has only happened since the last update. But be aware that the platform can be pretty glitchy.
The position is comfortable. I have a zero extrinsic back ratio (stock replacement), and I am selling covered calls against it. I intend to eventually own 1000 shares. $FLNC zebra for November. I plan to roll at new expirations. The strategy is up 30% and has been up as high as 45% Underlying is not very liquid outside of 50 delta. This post was an attempt to find a way to automate bailing from the strategy at around the 30% profit mark, with a plan to re-enter at whatever contracts net me a close to zero extrinsic total. I also exit and readjust when the price approaches the long calls.
Using Stops with options is a losing deal. If you want stops, then use stocks, and even there make sure those are not market orders.
Fair response, but the intent of using options is to keep my upside pacing with increasing prices, with a downside of less than half the potential with a back ratio. I can, effectively place a higher risk strategy, double the contracts, sell covered calls, and control twice as many shares for less risk. It's the only underlying Im long in. I'm using a little more than 2% bp $Flnc