Fixing Option Order Issues in TradersPost
TradersPost users may experience Buy to Open and Buy to Close orders appearing reversed when trading options. Learn how to adjust settings, test trades, and ensure correct execution.
Some TradersPost users have experienced problems when executing options trades via webhook, particularly on tastytrade. Orders sent as Buy to Open sometimes arrive as Buy to Close, and Sell to Close orders are occasionally processed as Sell to Open. This issue stems from how TradersPost interprets option order types, requiring users to think about orders differently when using TradingView signals.
Why Option Orders May Seem Reversed
Options trading differs from stock trading because:
- Buying a call is bullish, but buying a put is bearish.
- Selling a call is bearish, but selling a put is bullish.
- TradingView sends buy and sell signals based on the underlying asset (e.g., SPY), which TradersPost must translate into the correct option orders.
For example:
- A sell signal from TradingView on SPY may need to be converted into a buy put order.
- This can feel counterintuitive, but it ensures the correct directional trade is placed.
How to Ensure Correct Option Orders
1. Choose the Correct Option Order Type Setting
TradersPost allows users to set how orders should be interpreted:
- Both – Buys calls when bullish, buys puts when bearish.
- Call – Buys calls when bullish, sells calls when bearish.
- Put – Buys puts when bearish, sells puts when bullish.
Choosing the appropriate setting ensures orders are translated correctly from TradingView signals.
2. Test Orders Before Sending Live
To prevent errors, test your orders first:
- Disable Auto-Submit in TradersPost to preview how the system constructs orders.
- Use a paper trading account to check if orders match expectations.
- Send test webhooks to see how TradingView signals are being processed.
3. Understand TradingView Signal Conversion
- If a TradingView strategy is based on the underlying asset (e.g., SPY) but you’re trading options, TradersPost must convert buy and sell signals accordingly.
- This means a sell signal from TradingView might translate into a buy put order in TradersPost.
- Users should verify how TradingView signals align with the intended options orders before executing trades live.
Conclusion
Options trading requires understanding how order signals are translated within TradersPost. By adjusting order type settings, testing trades before execution, and accounting for TradingView signal conversion, traders can ensure their option trades are executed correctly and avoid unexpected errors.
