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Buy Write

Trading Term

A buy-write is a combination order that involves both stock and options. For IBKR Lite accounts, buy-write orders will be charged normal commissions on both the option and stock portions of the order.

To create a buy-write order in TWS, you can use the Strategy Builder tool:

  1. Click “Advanced” button and then “Stock Leg” button
  2. Set your order parameters
  3. Click Submit to preview and Submit Order when ready

An option strategy that involves simultaneously buying (or selling) a stock and selling (or buying) a call option of the same underlying. For example:

Purchase a Buy Write:

  • Sell 1 XYZ April06 95 call
  • Buy 100 shares XYZ

Sell a Buy Write:

  • Buy 1 XYZ April06 95 call
  • Sell 100 shares XYZ

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