Track 'n Trade LIVE Futures

Placing Complex Multi-Leg Option Orders

Video Transcript

In this video, I'm going to show you two ways to put on a complex options strategy.

So, what we're going to do is we're going to put on an iron condor. We're going to put it on manually, and then we're going to put it on automatically. The first thing we need to do is select the days till expiration. I'm going to come down here to 37 days till expiration. An iron condor has two sell options and two buy options, so let's go ahead and place those in there.

First, we're going to sell a call, and we're going to sell a call above the current market price. Then, we're going to sell a put below the current market price. Now, we're going to come in and buy our protection call above the current market price, and we're going to buy our put down below the current market price. There you go! We have just legged into an iron condor.

Now, we didn't send each one of those legs into the exchange individually. You'll notice that we just built those into the order ticket. To place that order, we can either bid for it or simply place a market order. We click "Place Order," and we've now placed that into the market. So, anything you want to build, you can build manually in Track and Trade.

Now, Track and Trade has a number of pre-built systems built into it. Let's go ahead and liquidate this position. I'm going to come in here, and I'm just going to say "Liquidate the multileg," and we're going to mark it out of this one. We get rid of that one, and now, to put on a pre-built iron condor, all we do is come in, and in this drop-down menu, you'll see Iron Condor listed. We highlight it, click it, and it automatically populates our order ticket with the iron condor information and then puts it on the screen.

Now, we can make any adjustments that we want. We can either adjust it on the screen by dragging the orders to a different location like this, or we can do it down here in the options chain by moving the orders and the legs to any leg location that we want. These are the adjustments that you can make through the on-screen green control panel or the options chain, or you can make adjustments directly in the order ticket.

For example, if you would like to change the order to now be a six-day option, we can come in here and adjust each one of these to be six days. You'll notice that I'm doing that right here in the options control panel in the order ticket itself because we have not yet sent it off to the exchange. Once we make all the adjustments that we want, and we have everything the way we want, this is where we come in. We have the bid, the mid, and the ask. We can go ahead and bid for it, or we can simply hit Market Order and place the order.

Now that we have our iron condor on the screen, we can come down to our "Positions" tab, and you can see we have one individual line across the top, which combines all four options into one, telling you your profits and losses. You can also see each individual leg, one at a time.

Let's go ahead and liquidate our iron condor. We can just right-click on any one of the legs, and it's going to say "Liquidate the multileg." Of course, you can liquidate an individual option out of the leg if you'd like to leg one position out, or you can liquidate the entire multileg at the same time. Let's go ahead and do that. You'll notice that it populates the order ticket again. We'll just go in here with a market order, as opposed to bidding for it, and we'll place the order. Now, we're out of the market.