Understanding Call and Put Options in TradersPost
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.
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The current documentation shows that put inversion is controlled by the opt-in Invert puts setting rather than applied universally or merely planned, so the options guidance now reflects the available setting and its limits.
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 → Buys a Put (Bearish)1.
• Sell Signal → Sells to Open a Put (Bearish)1.
The key point is that, by default, a buy signal buys a long put, and a sell signal sells a short put; enabling Invert puts reverses that mapping1.
Why This Matters
• TradersPost originally based its options behavior on underlying stock movements. If Tesla drops, a sell signal sells a put by default; enabling Invert puts makes it buy a put1.
• Some traders prefer direct control, where a sell signal actually sells a put rather than buying one.
• TradersPost offers an Invert puts setting so traders can choose how put orders are handled2.
Future Improvements
• The Invert puts setting allows traders to reverse the default put mapping, giving control over buy/sell signals2.
• 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 uses the default buy/sell mapping for puts, and traders can enable Invert puts to reverse it1. Understanding these mechanics ensures traders execute their strategies correctly.
References
1 Webhook Reference | Documentation | TradersPost
2 Options Trading | Documentation | TradersPost
