Combine strategies

[bsn]

Dear OptionStack Team,

Please advise if it possible to combine different strategies in one? My issue is:

1) sell strangle, expiration dates 25-30, deltaabs 20-30

2) buy put, expiration dates 25-30, deltaabs 10-20

Both actions should be executed in the same day with same expiration dates.

Thank you in advance!

[OptionStack]

You can leg into multiple spreads, combining one spread into larger spreads. For instance, you can leg into larger spreads with different strikes / expirations / ratios.

For more information on legging into trades, please see:

https://www.optionstack.com/kb/rolling-trades/?discuss

[bsn]

Thank you for your reply! This is very helpful information and I already use it in backtesting.
But if I understand correctly, legging and/or rolling could be executed at least on the next day after the main strategy has been opened. I would like to clarify, if it possible to execute legging the same day when main strategy is opened.
In the example I mentioned selling strangle and buying put should be executed simultaneously. If there will be delay even for a one trading day, market conditions could make second trade not relevant.

Thank you in advance!

вторник, 9 августа 2022 г. в 17:38:01 UTC+3, OptionStack:

[OptionStack]

Currently, legging and rolling will execute at the next bar / tick of data.  This works well when using intra-day data, as the next bar / tick of data may be only a few minutes apart.  But when using EOD data, the next bar / tick of data will be the next day.

But we can add this feature to our roadmap to support legging / rolling on the same bar / tick of data.  

The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by OptionStack. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment.  There are no guarantees as to accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. Past performance is no indication or guarantee of future results. All investments involve risk – including loss of principal. You should consult with an investment professional before making any investment decisions.

[OptionStack]

You can combine multiple strategies into a single transaction by creating them as a CustomSpread.   For instance, you can sell a strangle and buy a put as a single transaction using a CustomSpread.  

Here is some more information on creating your own custom option spread:  Creating Custom Option Spreads

The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by OptionStack. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment.  There are no guarantees as to accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. Past performance is no indication or guarantee of future results. All investments involve risk – including loss of principal. You should consult with an investment professional before making any investment decisions.