Closing double Calendars

[meshka 2]

Morning all, I'm wondering what the best practice is to get out of a double calendar using IB.

 

Seems to me that selecting all 4 legs the double calendar as a whole might make it tough to get out at a good price.

I also don't want to leg out leaving open any naked position.

 

Thanks for any help with this.

 

[Edwin 63]

I can't use TWS from work (I use webtrader), but I would think closing 2 legs at a time is best in terms of pricing fills, but won't be the best for commissions.  It might also depend on how far away your strikes are from each other and if the spreads are trading near the same price.  You never want to leg out, since you're leaving yourself at risk of a big move.

[Yowster 8,046]

I can't use TWS from work (I use webtrader), but I would think closing 2 legs at a time is best in terms of pricing fills, but won't be the best for commissions.  It might also depend on how far away your strikes are from each other and if the spreads are trading near the same price.  You never want to leg out, since you're leaving yourself at risk of a big move.

Actually, with IB not having any up-front or "ticket" charges, it will have no effect on commissions since all IB commission charges are on a per contract basis.  I always close one calendar at a time and never try to close two calendars with the same trade.  I wouldn't recommend legging out of one calendar as that really makes your trade directional after one of the legs has been closed.

 

As for not being able to use TWS from work.  I was in the same boat due to corporate IP settings and firewalls - but got around the issue by creating an Amazon web server and then RDP-ing into it and running TWS from there (I RDP using a tablet, but your work PC can also be used if you are able to).  If you go down this road, don't use the free "micro sized" AWS server as that will be too slow for TWS.  I used a medium sized windows server, and only bring it up when I'm trading or preparing to do so, and the cost is typically around $20 a month.   Compared to using brokers other than IB, I'll more than make up for that extra $20 with a couple of trades per month so its a good solution for me.

[Ordos 10]

Edit: oops wrong thread

Edited October 26, 2015 by Ordos

[meshka 2]

Thanks Yowster I guess where I'm a bit stuck now is how to select just one calendar of a double calendar entry  in TWS. I'm in classic mode and all the legs / calendars are under one drop down. Not sure how to select one calendar within that drop down. Does that make sense?

 

 

 

Thanks

Edited October 26, 2015 by meshka

[meshka 2]

For clarification: I entered the Apple double calendar all at the same time so in TWS they seem to be connected. 

I think Kim and the crew tend to buy calendars one at a time which would then allow us to get in at out of the separate calendars independently of each other. Seems I might be stuck with having to close the two calendars at the same time.

 

Just wondering if there is a way to some how select as I mentioned above one calendar within a double.

Thanks   

[Kim 7,513]

I usually don't do 4 legs as it might be more difficult to fill. I open and close two calendars as two separate orders, you can easily do it in TWS.

[Yowster 8,046]

Meshka - They are connected on the main portfolio.  However, using TWS that doesn't mean that you need to close them from the main portfolio screen as one entity.   You can use the spread builder screen to pick leg by leg what you want to buy/sell to close.   I use spread builder for most of my trades, both opening and closing - it may take a bit more time to enter the trades, but for me being able to pick exactly what I'm buying and what I'm selling make errors less likely (for me, anyway).

[meshka 2]

Thanks Kim and Yowster!  It's my first month trading live and first month with IB and first month with OptionNet so a lot of moving parts. Really appreciate the help.  

 

@Kim if you manage the calendars separately then how do you handle them in OptionNet explorer I like to see the whole trade in the graph with the profit etc. I could not figure out an elegant way to apply your style of keeping the calendars separate yet using OptionNet to Manage a double calendar trade.

 

@ Yowster thanks I'll try the spread builder in my paper account to understand how that might work in the future.

Edited October 26, 2015 by meshka

[Kim 7,513]

Thanks Kim and Yowster!  It's my first month trading live and first month with IB and first month with OptionNet so a lot of moving parts. Really appreciate the help.  

 

@Kim if you manage the calendars separately then how do you handle them in OptionNet explorer I like to see the whole trade in the graph with the profit etc. I could not figure out an elegant way to apply your style of keeping the calendars separate yet using OptionNet to Manage a double calendar trade.

 

@ Yowster thanks I'll try the spread builder in my paper account to understand how that might work in the future.

Why it is an issue? You just enter it leg by leg: first calendar first, then the second. Same for closing them.