Understanding Call and Put Options in TradersPost
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TradersPost allows traders to select calls, puts, or both, with specific rules for how buy and sell actions are handled. The system automatically flips sell signals for puts, though a future update may allow traders to customize this behavior.
What Do “Both,” “Call,” and “Put” Mean in TradersPost?
When trading options in TradersPost, users can select from three option types:
1. Both (Call & Put) – Trades both call and put options based on the signal.
2. Call Only – Trades only call options.
3. Put Only – Trades only put options.
Each of these settings determines how TradersPost interprets buy and sell actions for options trading.
How TradersPost Handles Options Trades
• Both Call & Put:
• Buy Signal → Buys a Call (Bullish).
• Sell Signal → Sells to Close the Call & Buys a Put (Bearish).
• Call Only:
• Buy Signal → Buys a Call (Bullish).
• Sell Signal → Sells to Close the Call (No Put trades).
• Put Only:
• Buy Signal → Sells to Open a Put (Bearish).
• Sell Signal → Buys to Close the Put (Reverses the initial trade).
The key point is that puts work in reverse—a buy signal opens a short position (sell to open), and a sell signal closes it (buy to close).
Why This Matters
• TradersPost originally based its options behavior on underlying stock movements. If Tesla drops, a sell signal means entering a bearish put position (buying a put), not shorting a put.
• Some traders prefer direct control, where a sell signal actually sells a put rather than buying one.
• TradersPost is considering making this behavior optional so traders can choose how put orders are handled.
Future Improvements
• A possible new setting may allow traders to disable the automatic inversion for puts, giving full control over buy/sell signals.
• More clarity in the dropdown descriptions to ensure traders understand how orders are processed.
Conclusion
TradersPost handles options based on whether a trader selects both, call-only, or put-only trading. The system automatically flips sell signals for puts, which may be adjustable in future updates. Understanding these mechanics ensures traders execute their strategies correctly.