Editing and Placing Multi-Leg Strategies

How do I place multi-leg option strategies?

You can both edit and place your multi-legged options strategy using our intuitive mobile app and desktop platforms. Please note that advanced options strategies are available on both the desktop and mobile app, but are not supported on the web version. For instructions on how to navigate these platforms, please see the details below:

App:

1. Navigate to Markets, then search for the underlying stock using the search function.
2. Tap Options located left of Chart.
3. At the bottom of the options chain, tap the dropdown to select your desired strategy, side (call/put) and width the options chain displays.
4. Once a strategy is selected in the options chain, you will be directed to an order preview.
5. If you wish to change the strategy, strike, transaction type, width, or expiration date, simply tap on the name of your selected strategy located top right of the order preview page.

Why is the bid price negative on a multi-leg option strategy?

A negative bid price can appear when the bid and ask prices of the individual legs differ significantly. For example, if buying to close the short leg costs more than what you receive from selling to close the long leg, the combined quote for the spread will show a negative value. In these situations, the spread cannot be closed with a single order, so you’ll need to close each leg separately, starting with the short leg.

Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options and Option Spread Risk Disclosure before trading options.