Electronic trading major Interactive Brokers has released version 1.3 (beta) of the IBKR Desktop platform.

In the latest release of the platform, Protective Collar options trading strategies have been added to the Options Wizard. This options trading strategy provides a way for clients to protect an existing position from losses below a certain amount at the cost of capping upside.

To utilize this tool:

• Navigate to Quote and select the Underlying asset from the left-hand side.
• If you do not have an open position for the underlying, you must first buy 100 shares of the stock.
• Click the Option Wizard tab.
• Click Protect a Position.

• Click Find Strategies
• Select the Maturity Date followed by a percentage or dollar amount for Protect my position in from falling more than… and Give up gains in QQQ rising more than…
• Click Find Strategies.
• A list of strategies which leverage an existing Stock position will populate in the Results panel. Select one of the Protective Collar option strategies that best suits your trading strategy.
• Once you select the strategy, the order ticket on the right-hand side will pre-fill with the desired order. Enter the additional order parameters and click Submit Buy Order to transmit.