Closing Unbalanced Positions

Discussion in 'General Discussion' started by Joe A, Nov 23, 2016.

  1. Joe A

    Joe A Active Member

    Am looking for advice on how to close an unbalanced position. For example, in managing delta over the period of a trade, I end up with 22 short and 20 long calls. This could be a major index (SPX) or a smaller equity (HPQ). In terms of getting filled to close the position, can I submit in TOS a custom order to buy 22 calls and sell 20 calls? Or will a market maker be much more likely to fill a 20/20 vertical and then I have to manage the risk myself of closing the last two short calls.

    Any experience and advice would be greatly appreciated.
    Joe
     
  2. ACS

    ACS Well-Known Member

    I trade through IB rather than TOS but I have had an order filled to roll a symmetric butterfly 50 points by using a single +10-30+30-10 combo.
     

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