- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Lesson 6 of 17
Investors may use the Strategy Builder to easily create multi-leg options strategies from within the Option chain. To get started, the user may open the Option Chains from the Quote page.
Locate the Strategy Builder toggle to the right of the option chain selectors. Activate the Strategy Builder by clicking on the toggle.
When activated, the right-side Price Panel with order buttons is replaced by the Strategy Builder interface.
To add legs to your strategy, click the bid (for a sell) or ask (for a buy) at a specific strike price. By default, call options are on the left side of the strike, and put options are on the right. Each leg is added to the Strategy Builder.
User may remove any leg using the minus sign to the right of the leg in the Strategy Builder.
If you create a known strategy, for example a Bull Call or a Calendar spread, the strategy is labeled for convenience.
User may adjust the strategy by changing leg from buy to sell and vice versa. The ratio can be adjusted by typing into the Quantity field. Easily add a stock leg to your strategy using the Add Stock Leg feature.
The combination summary and quote is displayed below, indicating the number of legs, the strategy (if known) and the bid/ midpoint and ask prices. The Order Ticket states the price and shows whether the cost is a credit or debit.
Note the Performance Profile and profit chart below the quote. Depending upon the nature of the combination and number of legs involved, the data displays max loss, max profit and associated breakeven prices. The Performance Profile chart visually displays the trades potential characteristics over a designated price movement for the underlying asset. Use the Max move dropdown to change the data reading displayed on the plot. By default the Profile displays P&L, which is shown here in blue font. The user may alter the profile display through a selection of Greek values by clicking on the label. Note also that the date selector enables the user to view P&L or Greek values on any date through expiration. Scroll down the page to see additional data and news related to the underlying asset.
Once the user has finished adding legs to your order, they click Order Ticket to set up and submit the multi-leg strategy. Here the user may modify any necessary order parameters like order side, quantity, order type etc, before submitting the order.
Resources
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.
Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
How can I change the chain strikes from high (top) to low (bottom)?
Thank you for your question, masoud. Please click the column header “Strike” once and it should sort the strikes from high to low. You can click it again to sort it from low to high again. We hope this helps!
Unfortunately, it does not work for me either. Neither left nor right nor double click changes the order of the strikes. Initially I thought it was an issue with the early version, but even in the latest one on MacOS I cannot change from high to low. As I am used to the high-to-low layout, it is very difficult for me to use IBKR Desktop at all right now.
Hello again Wolfgang, we are sorry to hear this. If you are facing an issue with a particular feature, please submit a web ticket or report the bug in IBKR Desktop (speech bubble with thumbs up icon) so it goes to the development team. https://spr.ly/IBKR_TicketCampus
We would appreciate the opportunity to turn around your experience.
Hi, how can I see the margin requirement and probability of profit before open a position?
And for futures, how can I choose the month of the contract when I use the search bar?
Thank you.
Thank you for asking. Please review our margin rates and requirements on our website:
https://www.interactivebrokers.com/en/trading/margin-requirements.php
You can use the Probability Lab to analyze the market’s probability distribution, which shows what the market believes are the chances that certain outcomes will occur and adjust based on your own forecast. Please view this Traders’ Academy course for more information: https://www.interactivebrokers.com/campus/trading-lessons/ibkr-probability-lab/#:~:text=Use%20the%20IBKR%20Probability%20Lab%20to%20analyze%20the,stock%20is%20different%20from%20that%20of%20the%20market.
When buying futures, it is possible to view the month of the contract by searching the contract in the search bar, clicking More/ Multiple, then selecting the month you desire.
We hope this helps!
Strangely, I can toggle the toggle the strikes from high-low-high on TWS options chain but not the desktop.
additionally, could someone confirm volume profile indicator is only available on Desktop chart and not TWS advance chart?
Hello Jerry, the Volume indicator is also available on TWS Advanced Charts. We hope this helps!
Basically, when I sell OTM call & put on same day expiration, with an objective of pocketing both the premiums what should I do in IBKR mobile app?
1) buy short strangle strategy or
2) sell short strangle strategy
NOTE: Following is easy to understand, but involves two orders.
3) sell the put & sell the call legs
Hello, thank you for reaching out. Please note that IBKR does not provide investment advice.
How to place a sell vertical put for credit .
Hello Nitin, thank you for reaching out. To sell a put vertical spread in TWS:
1. Open the Strategy Builder in TWS.
2. Select “Calls and Puts” view.
3. Click on the Bid price of the put option you want for the long leg to add it to the strategy.
4. Click on the Ask price of the put option with a lower strike that you want for the short leg.
5. Define the order parameters like quantity and price in the Order Entry section.
6. The debit or credit amount will be shown. Since this is a put credit spread, you should see a credit.
7. Review the order and transmit it to sell the put vertical spread.
Please review this tutorial on IBKR Campus for additional information:
https://www.interactivebrokers.com/campus/trading-lessons/vertical-credit-spread/
how to add futures in strategy builder? for the purpose of studying hedging?
Hello, thank you for reaching out. The Strategy Builder allows you to easily build complex, multi-leg option strategies for equity options and futures options. You can type the symbol into the upper left hand corner and the data should populate. Please reach back out with any additional questions. We are here to help!
on the TWS Strategy Builder what does the RT column do?
Thank you for asking. The RT column is the ratio column. We hope this answers your question!
Hi, I’m using the desktop platform in Australia. I can enable the strategy builder when trading AP for example, but I can’t enable the strategy builder when ES E-mini S&P 500 options chain is selected. I have been able to enable it for ES before. Don’t know why I cant now. Any ideas?
Thank you for reaching out. We cannot replicate this situation. After clicking “Quote” on the left-hand side of the screen, click Options Chain and toggle on the Strategy Builder. If you continue to experience difficulties, we recommend contacting Client Services or submitting this feedback directly to our developers using the instructions provided in this FAQ: https://www.ibkr.com/faq?id=32653353
Why am I not able to toggle the strategy builder button for future options?
I’m having the same issue. Why can’t it be switched on for Future Options?
Thank you for reaching out. We cannot replicate this issue. If you are experiencing a time-sensitive trading issue, please contact Client Services: https://spr.ly/IBKR_ClientServicesCampus
Thank you for reaching out. We cannot replicate this issue. If you are experiencing a time-sensitive trading issue, please contact Client Services: https://spr.ly/IBKR_ClientServicesCampus
Hi – Is there a way to close a covered call as one position rather than having to close the shares and the option separately? Thanks
Yes, you can close a covered call as one position instead of closing the shares and option separately. Please review this User Guide for more information on Combination Orders: https://www.ibkrguides.com/kb/article-1323.htm
We hope this helps!
HI, How to attach a bracket order on strategy builder for complex/ multi leg options strategy eg. Iron Condor or Vertical Spread? There’s no bracket order attached on the ‘Advanced’ tab after I built my strategy. Please advise. Thank you.
Hello, thank you for reaching out and we apologize for the delayed response. To create a bracket order for options in IBKR, you can use the Option Chain & Combo Builder tool:
Open the Option Chain for the option you want to trade.
Activate the Strategy Builder by tapping the circle icon in the bottom right.
Add your option legs by tapping on the bid or ask prices.
Tap “Add Stock Leg” to add the underlying stock if needed.
Once your full strategy is built, tap “Order” to create the bracket order.
You can set the profit taking and stop loss legs when placing the order. The orders will be linked as a bracket for automated execution.
For detailed instructions on how to trade options in TWS: https://www.ibkr.com/faq?id=41566035
Please reach back out with any additional questions. We are here to help!
Can you add multiple stocks to the strategy builder? For example, a call ask for Tesla and a Put bid for Apple and see them together and out potential outcome on the strategy builder?
Hello, thank you for asking. You cannot add multiple products to the strategy builder at the same time. However, you can toggle between different products in the upper left-hand corner. We hope this helps!
IBKR desktop does not allow me to toggle between ascending/descending order. How do I do this?
I am referring to the option chain strike prices…
I’m in Option Strategy Builder, for SPX. Why are the strike prices 50 dollars apart mostly? I’m looking to get all the strike prices in between e.g. 5, 10, 15, 20, … , 45, 50. Thanks.
Hello Ivan, thank you for reaching out. Options exchanges set strike prices and intervals for options contracts. We hope this helps!
Hi, can i enable strategy builder when i add the option chain to my own custom layout?
Hi Shane, thank you for reaching out. No, this is not possible at this time. To turn on the Strategy Builder, navigate to “Quote”> Option Chain, and toggle on the Strategy Builder. Please review this FAQ on where you can leave your feedback, and submit any specific suggestion(s) on how we can improve:
https://www.ibkr.com/faq?id=32653353
You can also post in the Feature Poll in Client Portal where other IBKR users can comment and vote:
https://portal.interactivebrokers.com/portal/#/suggestions
We hope this answers your question!