How to close one side of Iron Condor on IB

[clin]

I am new here and learning a lot everyday.

 

I am following several Iron Condor trades and one thing I have not figured out is how to close one side of Iron Condor on IB. I can only close one leg at the time, but I want to close the put spread part.

 

I read the following post, but it does not solve my question.

https://steadyoptions.com/forum/topic/1515-placing-a-trade-on-interactive-brokers/

 

Can anyone share how they close one side of Iron Condor on IB?

 

Thanks!

Edited October 6, 2015 by clin

[indiana*josh]

https://steadyoptions.com/forum/topic/1515-placing-a-trade-on-interactive-brokers/

 

Can anyone share how they lose one side of Iron Condor on IB?

 

Thanks!

 

The way I do it is by building the call spread and the put spread as separate vertical spreads and adding them to the quote monitor.  Then, I place GTC orders to close each spread individually when it reaches my target.

[clin]

Since I created Iron Condor as a whole, what can I do at this point?

If I, for example, create another combination where I buy-to-close 1700 SPX put and sell-to-close 1690, will it closes my position?

I do not see where I can specify I want to close the position.

[indiana*josh]

Since I created Iron Condor as a whole, what can I do at this point?

If I, for example, create another combination where I buy-to-close 1700 SPX put and sell-to-close 1690, will it closes my position?

I do not see where I can specify I want to close the position.

 

When you opened the IC, you actually opened positions in 4 distinct options.  If you create a new combination consisting of 2 of those 4 options (say, the put spread), and close it, you will have closed your position in those 2 options.  In fact, the quote monitor will show your position in the IC as being 0, because you no longer hold all 4 of those options.  (Which can be misleading, because you still hold the other 2.)

 

The various spreads and ICs are just convenient ways of thinking about certain combinations of options in the abstract, but your positions are always in the individual legs themselves.

 

Hope that helps.

[4REAL]

It does not matter so much how you opened the IC

As  indiana*Josh pointed out,

the IC is actually not more than 2 verticals, a put vertical and a call vertical

 

By building 2 separate vertical (put and call)  in your quote panel,

you will be able to close for example the put vertical 

and you will still have the call vertical, which you can close later on  as a separate vertical

 

hope this helps

[craigsmith]

When you opened the IC, you actually opened positions in 4 distinct options.  If you create a new combination consisting of 2 of those 4 options (say, the put spread), and close it, you will have closed your position in those 2 options.  In fact, the quote monitor will show your position in the IC as being 0, because you no longer hold all 4 of those options.  (Which can be misleading, because you still hold the other 2.)

 

The various spreads and ICs are just convenient ways of thinking about certain combinations of options in the abstract, but your positions are always in the individual legs themselves.

 

Hope that helps.

Thanks for the explanation. I was wondering why IB was still showing my IC with a 0 position. I'm assuming at some point they will adjust it. 

[indiana*josh]

Thanks for the explanation. I was wondering why IB was still showing my IC with a 0 position. I'm assuming at some point they will adjust it. 

 

No, I don't think they will.  You now own zero of that particular IC (unless you were to re-open the necessary spread to complete the set again).  What I would do is delete the IC from your quote monitor (since you don't have it anymore) and add a new combination consisting of the options that you do still have (i.e. the call spread, assuming you closed the puts).  That way, you will be able to create orders in the future when you want to close the remaining spread.

 

If you click on the Portfolio tab in the quote monitor, it will show you all of the individual options in which you still have a position, regardless of whether you opened them as part of a combo.

[clin]

Thank you all for your responses!

[craigsmith]

No, I don't think they will.  You now own zero of that particular IC (unless you were to re-open the necessary spread to complete the set again).  What I would do is delete the IC from your quote monitor (since you don't have it anymore) and add a new combination consisting of the options that you do still have (i.e. the call spread, assuming you closed the puts).  That way, you will be able to create orders in the future when you want to close the remaining spread.

 

If you click on the Portfolio tab in the quote monitor, it will show you all of the individual options in which you still have a position, regardless of whether you opened them as part of a combo.

Wow, they don't make it easy. Stumbled through that, logged off and back on. At least the calls are showing up now, even though it's no a vertical, at least it's there. Thanks for your help.