How do I place the Layered Options trade at my broker?
Quick answerEnter the two legs as one ticket, a call vertical: buy to open the lower call, sell to open the higher one, same expiry. Pay a debit of around the posted price with a limit order. Once filled, set a GTC limit to close at the posted credit.
The details
The post reads like this:
- Buy to Open (expiry) (ETF) (lower strike) CALL
- Sell to Open (expiry) (ETF) (higher strike) CALL
- Combine them into one ticket as a "CALL Vertical".
- Pay a debit of around (price) using a limit order.
- After it fills, set a closing Good Till Canceled limit for the posted credit (the GTC target).
Step by step
- In your broker's options chain, choose Vertical (or "spread"), Call, Buy.
- Pick the posted expiry and the two strikes.
- Set a limit at about the posted debit, and send it.
- When it fills, choose close on that position, a limit at the posted credit, GTC.
The Quick Start Guide lesson has videos for Robinhood, thinkorswim and Webull (brokers).
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