Here’s a step-by-step guide on how to close out a trade on your mobile device. In the example above, we use the Interactive Brokers mobile app and we are closing out a call spread.
Recall that a call spread is generally a short of one strike that is higher than the market — while simultaneously buying a second strike that is just a little bit higher than that first strike.
Since the market has dropped since initiating this call spread – the value of the short option has declined more than the value of the long option — resulting in a net profit for us. Since prefer not to wait til expiration in order to realize our gains, we decide to take profits.
Here’s exactly how to take profits from the convenience of your phone.
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