Why Can’t I Use Stop Orders for Spread Options?
Summary of User’s Problem and Solutions:
- The user expressed frustration over the absence of a stop order type for spread options, noting that other brokers offer this feature.
- A representative from Fidelity explained that multi-leg options are not eligible for conditional orders, including stops or trailing stops.
- The representative assured the user that their interest in stop orders for spread options would be communicated to the relevant teams for consideration.
- The user was directed to the Order Types FAQ page for more information on order types and restrictions.
Here’s the full thread
Why there’s no stop order type for spread options? Other brokers have this function
#optionorder
Thanks for reaching out to us.
Multi-leg options are not eligible for any conditional orders, stops or trailing stops, or Trade Armor. That said, I’ll certainly pass your interest in doing so on to the appropriate teams since we’re always interested in learning more about our clients’ needs.
You can review our Order Types FAQ page for more on order types and restrictions, but don’t hesitate to reach out if you need any further assistance!
Trading FAQs: Order Types: https://www.fidelity.com/trading/faqs-order-types
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/about/publications/character-risks.jsp). Supporting documentation for any claims, if applicable, will be furnished upon request. 🟢