How does the +40% sell work?
Quick answerRight after your spread fills, place a GTC (good till cancelled) limit order to sell the same spread at 40% more than you paid. The ticket shows that price. It sits at your broker until it fills or you cancel it on the last day.
The details
- Your buy fills, say at the debit on the ticket.
- Place a sell order for the same spread: limit at the +40% price on the ticket, GTC.
- When the spread reaches it during the day, it fills at your price.
- If it hasn't filled by the 10th session, cancel it and close the spread that afternoon.
Our checks at 9:45 AM and 3:50 PM ET mark when a ticket reaches +40% ("Order up"). The stock doesn't need to rise 40%: only the spread does (why).
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