Set options position size and exit rules

TL;DR

An options premium budget limits whole contracts; buying power and liquidity can reduce the final quantity. In the recorded SPY example, a $1,000 budget and $8.71 ask with a 100 multiplier allowed one call, before additional costs. Add trend and time exits separately, then confirm the actual closing fills. A preset supplies legs rather than a complete exit algorithm, and expiration payoff cannot replace the P&L from closing early.

Check the opening quantity and complete exit

A separate detailed run completed on 2026-10-10 with the same saved candidate, fixed dates and fees. It reproduced the lightweight result retained in the linked source record. The captured opening condition had SPY at $472.16, SMA50 at $461.57 and matching-position count 0. Both entry checks were true.

The first position opened on January 2 and closed on January 19, 2024, at 14 DTE. The time-exit close evaluation emitted 1 order. These are simulated Filled orders, not broker executions. The first position's P&L was $1.51 after recorded commissions, calculated from all its opening and closing premiums and quantities.

Compare the selected-candidate bid, ask and mid with the Filled-order premium. Follow the contract symbols and timestamps to connect selection, sizing and execution.

Read the quote used to size one SPY call

The candidate snapshot shows the bid and ask used in the sizing decision. Every selected leg had the February 2 expiration, 31 DTE at entry and multiplier 100.

The liquidity model kept the target. Allocation allowed 1 unit; the volume limit allowed 2. The requested and sent quantities were both 1. The opening premium also includes modeled liquidity impact beyond the persisted half-spread fraction.

Calculate what this recorded trade earned

The displayed premiums changed from $8.6544 to $8.6825. For 1 contract with multiplier 100, ($8.6825 − $8.6544) × 100 − $0.65 − $0.65 = $1.51 after the two recorded commissions. This calculation uses the displayed rounded premiums. The contract closed before expiration, so an expiration-payoff formula would answer a different question.

Its opening checks were SPY above SMA50 and zero matching option positions. The complete source preserves those indicator values, selected contract, quote, fill and close. Compare the first trade with the full-year curve before attributing the whole return to this one position.

The saved opening premium budget is $1,000. At the displayed $8.71 ask and multiplier 100, one call requires $871 premium; two require $1,742. Follow the recorded one-contract action, then inspect the additional commission and cash. Keep expiration, strike and ratio fixed while testing another budget.

A premium budget is a cap, not a promised quantity

The long call and bull call spread examples allocate $1,000 dollars per opening. The other algorithms request one strategy unit, subject to the recorded buying-power and liquidity bounds. The resolved debit and actual contract multiplier determine how many whole units can fit. Buying power and the liquidity model can reduce that quantity. A cheap-looking premium does not imply that the full budget will be deployed.

For an illustrative call premium of $8.50 and multiplier 100, one contract costs $850 before commissions and other execution costs; two cost $1,700. A $1,000 cap fits at most one under those assumptions. An illustrative two-leg debit of $3 and multiplier 100 costs $300 per spread before costs; three cost $900. Actual order sizing uses the resolved prices and its recorded constraints.

Inspect the size that was actually sent

The order decision record shows allocation inputs, requested quantity, chosen candidate and the sizing chain. Inspect allocationImplied, buyingPowerCap, volumeLimit and finalPriceRecap when present. A candidate may be kept, reduced, substituted or rejected; record what happened rather than assuming the preset's leg ratio is the final order quantity.

In the published first long-call opening, the allocation bound allowed one contract, while the liquidity bound allowed two. The sent quantity was one. Its candidate bid and ask explain indicative sizing; the Filled premium and commission explain the simulated execution.

Save both exits separately

The time exit checks positions at 14 or fewer DTE. The trend exit checks a separate market condition. Both target whole matching spreads. Keep unrelated matching positions in another portfolio if they need different exits. An opening preset does not add these close rules.

A condition firing does not guarantee an exit. Inspect close evaluations and Filled close orders, particularly when data is unavailable. If a position survives until expiration, inspect the run's recorded outcome and the broker's actual exercise and assignment procedures before using the same rules live.

Separate expiration payoff from closing P&L

A purchased call can lose its full premium. A debit call spread has limited expiration gain and loss under its matched-leg assumptions. The calculators use expiration intrinsic value, while these historical strategies attempt to close earlier. Volatility, time value, spreads and execution costs affect a close before expiration. Do not use expiration payoff as a substitute for the historical result.

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