Option Combinations
With LYNX, you can trade options not only on stocks, indices, and futures, but also construct multi-leg option strategies. These combinations allow you to define a specific risk and return profile tailored to your trading objectives.
This guide explains how to create and submit option combination orders using our platforms: LYNX+, Trader Workstation (TWS), and the LYNX Trading App. Option combinations always consist of more than one option contract, also called a leg. Although you could also trade a combination leg-for-leg, this pages only covers such strategies that have been created as combinations initially.
Disclaimer
Options trading entails significant risk and is not appropriate for all investors. Trading options may expose you to substantial losses, potentially exceeding your initial investment. Investors must review and understand the Characteristics and Risks of Standardized Options before engaging in options transactions. Past performance is not indicative of future results. Seek independent financial, tax, and legal advice before trading options.
LYNX+
Search your desired product
Log in to LYNX+ and navigate to your Portfolio or Watchlist. From there, select an underlying instrument to open the detailed overview page.
Toggle to the Options tab to see available call and put options, organized by expiration date.
Choose an Option Combination
If you want create a combination of options, select Create Option Combo to then add legs to your desired strategy. Make your initial choice and a new section opens with your select option contract.
This includes your legs and a performance profile which indicates the possible profit and loss. To then add more legs to your strategy, simply click the symbol +Add. You can as well change the action (either buy or sell) from the drop-down menu. To change the ratio of the legs, select or type the desired amount.
Create the order
When you’re ready to place an order, click on Create Order. In the order ticket, specify the quantity you wish to trade, select the order type such as a limit or market order, and define the time in force, for example ‘day’ or ‘GTC’. If applicable, you can also add a stop-loss or take-profit instruction.
Carefully review the order summary to ensure all details are correct. Once confirmed, submit the order to send it to the exchange.
TWS
Search your desired product
Search for the Underlying Product
Type the name, ISIN, or ticker symbol into a new row.
From the pop-up menu, select Combinations > Option Combos.
Choose either:
SMART routing, which sends your order to all eligible exchanges, or
Directed, to specify an exchange manually.
Choose an Option Combination
To choose an option combination, a new window will open. In this window, you can use the Strategy tab to select a predefined option strategy that matches your investment objective. Alternatively, you may build your own strategy by creating a custom combination or by adding individual legs manually.
You can adjust the Action (Buy or Sell), Quantity ratio, Strike price, Expiration date, and Option type (Call or Put). If needed, you can reverse the entire strategy setup using the Buy Combo / Sell Combo toggle.
If you wish, you can choose to display the individual legs of the combination in your Watchlist, or view the strategy as a single position with a 1:1 ratio. Once the configuration is complete, click Add to place the strategy in your Watchlist, and then click OK to continue.
Create the order
Once the strategy is created, open the order window to configure and submit it directly to the exchange.
LYNX Trading App
Search your desired product
In the app, search for the instrument or select it from your Portfolio or Watchlist.
Navigate to the Options tab to view call and put contracts by expiry date.
Choose a combination
To create a strategy with multiple legs, activate the Strategy Builder at the bottom of the screen. This function allows you to add legs by selecting bid or ask prices directly from the option chain.
You can adjust the direction of each leg (Buy or Sell) and modify the quantity ratio by tapping the arrows next to the relevant leg. To remove a leg from the strategy, tap the icon marked with an “x” on the right. If you wish to include the underlying stock in the combination, you can do so by selecting Add Stock Leg.
Once the strategy has been configured, you have the option to add it to your Watchlist. To proceed with an order, tap Order to open the order ticket. Within the order ticket, you can specify the total quantity, select the preferred order type, and, if applicable, attach additional instructions such as a stop-loss or take-profit. When ready, tap Preview to view the potential impact of the strategy on your account before submitting it.
Create the order
Tap Order to open the ticket, where you can set:
- Quantity
- Order type
- Attach stop or limit orders
Then tap Preview to see the projected impact on your account before placing the trade.
FAQ
Which kinds of option strategies can I trade?
You can create option combinations on stocks, indices, and futures. However, cross-asset combinations (e.g., options on different asset classes) are not supported.
Strategies with up to six legs can be constructed.
Can I close option strategies partially or leg-by-leg?
Yes. While a combination is displayed as a single strategy, you can choose to close or roll individual legs. The remaining legs will then be shown separately in your portfolio.
I have bought options in separate trades. Can I make them a combo afterwards?
Yes. If you have opened individual option positions and want to group them:
- Go to your Portfolio in LYNX+
- Tick the checkbox next to the relevant options
- Click Create Option Combination to form a strategy view