Trading Multiple Underlying Symbols (SPX, SPY, QQQ, ES)

New with TAT version 3.0 is the ability to trade symbols beyond just SPX, including SPY and QQQ equity options and ES Futures options.

Enabling Tickers

You can set up trades for any or all of the supported tickers at the same time. It is no problem to have an SPX trade, and also trade SPY and QQQ at the same time, for example.

On the TAT Settings page, you can select which underlying(s) you want to trade. Enabling a ticker symbol will load market data for that symbol and allow you to submit trades for any of the enabled symbols. Keep in mind that each symbol that you enable will increase the number of lines of data requested for IBKR users.

Settlement Considerations for Different Underlyings

SPX is cash settled, so there is no risk of assignment when you hold positions into the market close. That is not the case with SPY, QQQ, or ES.  ES options are settled into ES futures contracts, so you could end up buying (or selling short) an ES contract for each in the money option. 

SPY and QQQ are both assigned into shares of the underlying stock, so you could end up buying (or selling short) 100 shares of stock for each in the money option. Additionally, SPY/QQQ options are able to be assigned for up to 90 minutes after the market is closed depending on the broker. So, it is possible that an option that was out of the money at market close, could end up in the money if there is a large market move during after hours (possibly triggered by an earnings announcement).

It is very dangerous to hold SPY/QQQ/ES options all the way to expiration and for that reason, we HIGHLY RECOMMEND that all trades in those symbols are closed with scheduled exits a few minutes prior to the market close. 

TAT Subscription Contract Limit

Since SPY and QQQ equity options are smaller than SPX, you will likely want to trade more contracts per day. To avoid that causing you to need to subscribe to a larger TAT subscription level, contracts for SPY, QQQ, and ES are treated as a fraction of an contract for TAT subscription billing purposes.