Decision Recipes

Comparing Position Time to Expiration

Comparing position time to expiration allows you to reference a position’s time to expiration to make decisions. Here is how to use it.
Comparing Position Time to Expiration
Steve Henry
May 24, 2021

The decision recipe for comparing position time to expiration has three inputs:

  • Position
  • More than / less than / exactly
  • Days

This decision recipe allows you to reference a position’s time to expiration to make decisions. The recipe monitors the position while it is open.

Screenshot displaying the decision recipe for comparing position time to expiration

Because the comparing position time to expiration decision recipe uses information from an existing position inside a bot, it is typically used in monitor automations and after a repeater action.

Screenshot highlighting the repeater action in the automation editor

The first field prompts you to choose an existing open position inside the bot. Each existing position in the bot will be linked, and this field will pull in the necessary data from the position.

Screenshot highlighting the position link associated with the repeater action

The second field has you choose if the position has more than, less than, or exactly the days remaining until expiration. The third field prompts you to choose the number of days from a dropdown menu. When you have finished creating the recipe, select “Save.”

Screenshot highlighting the save button following the decision recipe inputs

NOTE: You can also create a custom input for the days to expiration, which allows you to input the field later to make the decision recipe dynamic across all automations.

The decision will be added to the list of criteria. You have the option to add more decisions to the recipe or return to the automation editor. When finished, select “Save” again to return to the automation editor.

Screenshot highlighting the save button to return to the automation editor

The automation editor will display your completed decision criteria for comparing position time to expiration.

Screenshot highlighting the decision recipe within the automation editor

You can always select the decision inside the automation editor and make changes to the criteria.

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Comparing Position Duration
Comparing position duration allows you to reference an open position’s duration from entry. Here is how to use it.
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FAQs

Why is Days to Expiration an important thing to consider?

Days to Expiration, or DTE, is important because it tells you when the option contract will expire and can have an impact on your trade, specifically the option greeks, in several ways.

Can this calculation be done on stock or is it for options only?

This is for options only, as stock does not have an expiration date.

Is it important to use the "Repeater" function ahead of this criteria?

The repeater function will cycle through all of your open positions to check each individual position. If your logic is to exit at a certain Days to Expiration, then yes, you would want to ensure every position is checked for this.

What if I select an exact number of days to expiration and that that day happens to land on a weekend or holiday?

The system will produce an error message as no contract will be available on that specific date.

Can I add additional criteria to this same automation?

Yes, you can always combine criteria together. An example of this might be to combine your days to expiration with a profit or loss decision.

Is the number of days designator based on just "Trading" days or does it include weekends and holidays?

It includes weekends and holidays. If today is Monday the weekly contract to expire on Friday will be 4 DTE. If Monday is a holiday, the same contract will be 3 DTE.

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