Great! You placed a trade, and you want to live a life away from your platform. Rather than stare at your trades to manage winners, why not let the platform do the work for you? We all manage winners differently, and our trading platforms can help you lock in winners at various profit targets, such as 50%.
Sections
When setting a closing order at a percentage of max profit, the order ticket will default to the current mark if the position you are managing has a percentage gain greater than your selected percentage.
Percentage Price Calculations
Uncovered Short/Naked Options
Uncovered/naked short calls or puts will calculate the closing % price based on the total credit received. For example, if you sold a naked put or call for a $1.00 credit, the closing price when closing at 50% of the max profit will list a closing price of a $0.50 debit in the order ticket.
Credit spreads
Similar to uncovered/naked options, the closing % price will base on the total credit received. For example, if you sold an iron condor for a $3.00 credit, the closing price when closing at 50% of the max profit will create a closing order of a $1.50 debit in the order ticket.
Long Option
Conversely, when it comes to long options, the closing % price will base on the price you paid for the single-leg call or put. For example, if you bought a call for a $2.00 debit, the closing price when closing at 25% list a $2.50 credit in the order ticket.
Long Options Spreads
Long option debit spreads will base the closing % on the max profit. For example, if you bought a $10-wide debit spread for a $3.00 debit, placing an order for 25% of profit would line up an order for a $4.75 credit. That is because the max profit on a $10-wide debit spread that costs $3.00 is $7.00 ($10 width - $3 debit = $7 max profit). A close at 25% of your max profit is $4.75 credit ($7 x 25% + $3.00), which is the price that will appear in the order ticket.
If you already know how to line up a closing order, then you’re halfway there. If you do not know how to line up a closing order and want to learn more about it, then please click here.
To learn more about different closing order types, please click here.
To learn more about GTC, GTD, and Day orders, please click here.
Desktop Platform
- Open the Positions tab to view your positions. Locate the options position you would like to enter a profit target %.
- Locate and click on the symbol group to expand and view your options positions. In the example below, we are entering a 50% profit target on a short call spread (vertical) on GOOGL where $1.70 was collected.
- Once the symbol group expands and displays your current position, highlight each leg by left-clicking it.
- When all legs are highlighted, right-click anywhere within the highlighted area. A closing menu pop-up menu will appear:
- Designate your profit % by using the arrows within the menu, or you may manually enter a profit % by clicking on the number:
- Click the circular blue arrow icon
after designating a Closing Profit %. - After clicking the blue arrow icon, you will be sent to the Trade tab where an order ticket at the designated profit % will populate. By default, the Time-In-Force (TIF) will be a GTD order that expires the day after the option’s expiration date. You can also change your TIF within the order ticket if desired.
- If everything looks correct, you can click Review & Send to review the order and then Send it.
Positions Tab
Trade Tab Order Ticket @ 50%
Closing an Order at % Profit through Order Chains
You can set up closing orders at a percentage of your max profit within the Positions tab when grouping symbols by Order Chains or in the Order Chains tab in the right-hand sidebar.
Location of Group By Order Chains on the Positions tab
The % of Max Profit feature will not take into account any rolls unless you group your positions by Order Chains on the Positions tab or through the Chains tab on the right-hand sidebar on the desktop platform. When grouping your positions by Symbol on the Positions tab the “Close Profit %” will base the closing order on the position's executed trade price.
Set up a closing order at a percentage of max profit on a position you have rolled. Click on the Order Chains tab in the right-hand sidebar. Right-click on the open position and select the percentage you want for the closing order. Then click the blue circle to populate the Trade tab with the closing order.
Screenshot showing Close At Profit % selection in the Order Chains tab
Web-browser Platform
- Enter the Portfolio tab by clicking the Portfolio icon
along the left-hand column. - Locate and click on the symbol group to expand and view your options positions.
- Once the symbol group expands and displays your current position, highlight each leg by left-clicking it. A pop-up menu will appear above your position:
- After selecting your positions click the orange “Close @ Profit %” button:
. - A menu will appear indicating the percent profit. The default target profit percent is 50. You may designate your profit % by using the arrows within the menu, or you may manually enter a profit % by clicking on the number. Once a profit % is designated, please click “START CLOSING ORDER.”
- After clicking “START CLOSING ORDER,” you will be sent to the Trade window where an order ticket at the designated profit % will populate. By default, the Time-In-Force (TIF) will be GTC. You can change your TIF within the order ticket if desired.
- If everything looks good, then you can click Review & Send to review the order and then Send it.
The animation below walks through the steps of lining up a closing order at a target profit percent. The example walks through entering a 50% profit target on a short put spread (vertical) on TSLA where $1.11 was collected.
Mobile Platform
- Navigate to the Positions tab
- Select the symbol to expand the view and show the individual options.
- Tap each leg you want to close. Selected legs will outline with a white border, and a menu will slide up from the bottom of the app.
- Tap the "Close At % Profit" button in the Manage Positions menu.
- Choose the percentage by using the arrows or number pad.
- Select the Set up Closing Order button
- You will be taken to the Trade tab with the closing order populated at the percentage you entered.
An animated guide to closing positions at the percentage of max profit.