Building Multi Leg Option Strategies

You build multi leg option strategies on the Options screen, where you pick a symbol, read its option chain, add one or more legs, and place the whole strategy as a single order with a live profit and loss preview.

Start From The Option Chain

Open the Options screen and choose a symbol. The option chain lists the available strikes and expirations, with calls and puts you can select. Each option has a strike price, an expiration date, and a premium, which is its cost. A call profits if the underlying rises and a put profits if it falls.

To build a strategy, add legs one at a time:

1. Pick an expiration and a strike, then choose whether you are buying or selling that leg.
2. Add the next leg the same way to shape your risk and reward.
3. Set your lots and quantity using the selector, which also works on mobile.
4. Review the live profit and loss preview, then place the order.

Common Strategies You Can Build

The Options screen supports single legs and true multi leg combinations, including:

• Verticals and spreads: buy one option and sell another at a different strike with the same expiration. A debit spread pays a net cost, a credit spread collects a net premium, and both cap your gain and your loss.
• Iron condors: sell an out of the money call spread and an out of the money put spread at once, aiming to profit if the price stays in a range.
• Calendars: buy and sell options with different expirations to trade time decay and volatility.

If you want a refresher on any of these terms, the Learn page has getting started guides.

Check Your Preview And Limits

Before you place the order, read the live profit and loss preview so you know your maximum gain, your maximum loss, and the net cost or credit. Remember that options can expire worthless, so size each position to what you can afford to lose.

Lot and position limits vary by plan, and so do the account rules your strategy trades under. You can see the live figures for your plan on the Pricing page and the limits for your active account on the Accounts page. The full rules live in the Trading Rules.

When your strategy is ready, place it from the Options screen and manage the resulting position like any other trade. If you have an account specific question, email [email protected] and we will help.