Multi-leg Options Orders

Multi-leg Options Let You Enter Complex Strategies as a Single Order.

Utilize multi-leg options orders to enter hedge and income strategies. Single order entry of complex options strategies enables you to reduce the potential market exposure of "legging in", and you pay only per contract fee.

Enter Butterflies, Collars, Combos, Condors, Covered Calls, Spreads, or Straddles as a Single Order

  • Utilize multi-leg options orders to enter or exit hedge and income strategies.
  • Reduce the potential market exposure of legging in with single order entry of complex options strategies.
  • Utilize the Advanced Options tab in the Trading Window to quickly locate the pairing combinations of a potential multi-leg strategy.

Sophisticated Real-time Options Pairing

  • Automatically pairs your strategies.
  • Margin requirements are minimized.
  • Available capital is maximized.
  • Customize your view:
    • See only relevant options pairing data or see full details in a expanded view,
      or condensed to save screen space.
    • Get specific and drill down on a position to see exactly how the margin requirement
      is being calculated in real-time.

Choose from the following Strategies and Conditions when Submitting Multi-leg Options Orders:

  • Rollouts: A Rollout, also known as a Roll Forward, is comprised of an order to close out an option position with a near-term expiration date and open a new position in the same class of option with the same or different strike price and a longer-term expiration date.
  • Write/Unwind: A Buy/Write (a.k.a. covered call) is a strategy involving the simultaneous execution of an equity and an option contract to create a covered position. The Write/Unwind tab allows you to place and unwind Buy/Write options orders.
  • Collars: A Collar is a protective strategy for a position in the underlying instrument created by purchasing a put and selling a call to partially pay for the put option purchased or vice versa.
  • Straddles: A Straddle is an option strategy comprised of an order to buy or sell both a call option and a put option, where both options have the same underlying instrument, the same expiration date, and the same strike price. Straddles comprised of options with different strike prices are sometimes known as Strangles.
  • Vertical Spreads: A Vertical Spread is an option strategy comprised of a long position and a short position of the same type (Call or Put), the same underlying instrument and the same expiration date, but with different strike prices.
  • Calendar Spreads: A Calendar Spread is an option strategy comprised of a long position and a short position of the same type (Call or Put), the same underlying instrument and the same strike prices, but with different expiration dates. Also known as a Horizontal Spread, or Time Spread. Calendar Spreads with different strike prices are sometimes known as Diagonal Spreads.
  • Combo/Ratio: A Combo/Ratio order includes numerous complex option strategies, some of which can have several legs and may involve equities and/or options. The Combo/Ratio tab allows approved traders to place option trades using the Butterfly, Condor, Conversion, or other strategies.

Most Multi-leg screens allow you to narrow down the number of displayed pairings by viewing only the following: All Money, In the Money, Out of the Money, At the Money, Around the Money, Above the Money, or Below the Money, depending upon which screen you are using.

Our sophisticated, real-time options pairing logic automatically and optimally pairs your strategies, ensuring that margin requirements are minimized and available trading capital is maximized.

Pairing Requirement Calculations

The Account Detail tool will show you how your pairing requirement is calculated. The Requirement columns are automatically updated each time you log on and before you enter a new position. You can also select Update Requirements at any time. Knowing the requirements for your open positions may help you avoid encountering a maintenance margin call.

  • Peg Requirements: The Peg Requirement is displayed because it affects maintenance excess dollar-for-dollar. It is calculated by taking the maintenance requirement of the position multiplied by the peg amount (25% for long positions & 30% for short positions most of the time). This amount is included in the total requirements.
  • Cash Secured Equity Put Requirement: Shows the cash requirement for this CSEP position in order to avoid a margin call. Spread Requirement: Shows the cash requirement for this Spread position in order to avoid a margin call.
  • Straddle Requirement: Shows the cash requirement for this Straddle position in order to avoid a margin call.
  • Naked Requirement: Shows the cash requirement for this Naked position in order to avoid a margin call.
  • Total Requirement: Shows the Total cash requirement for all positions in order to avoid a margin call.

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