Someone asks:
I have a few options that I bought or sold for a certain price. Is it possible to set automatic price in Fidelity, so that they will be sold to close or bought to close when the options price reaches a certain target price? If yes, can someone give me instructions? Would it be through the mobile app or the web platform?
Answer:
Paul R:
Yes you can place a good till cancel order to buy to close or sell to close your option depending on if it’s Short or Long respectively.
For instance if you sold a call for a $1.00 premium, and you want to buy to close once you’ve captured 50% of the premium, then you’d just place a good till cancel, buy to close limit order that will buy back that option with a limit price of $0.5.
You can place the order on: (1) the mobile app, (2) the website or (3) The Active Trader Pro desktop platform.
The GTC order will sit there and wait to execute and only execute if the option price reaches your limit.
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