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Overview
A combo order lets you trade shares and an option on the same stock in a single order, at one net price. The order only fills if every part can be filled together at your limit price or better. You can open or close a covered call position (buy 100 shares and sell a call) or a protective put position (buy 100 shares and buy a put) this way, on web and in the Wealthsimple app.
How combo orders work
- One order, one net price: You set a single limit price for the whole position. It shows as a net credit or a net debit. A net credit means you receive money overall. A net debit means you pay overall.
- All or nothing: Both parts fill together, or neither does. It can't fill only the shares or only the option.
- Limit orders only: Combo orders don't support market orders. Learn more about limit orders.
- Approval: A covered call combo order needs Level 2 options approval, because the call is a short position. A protective put combo order needs Level 1, because you're only buying the put.
- Activity: Your Activity shows one line for the combined position, with the net credit or debit, and separate lines under it for the option and the shares. Select the combined line to see each part's price, fees, and the net total.
Open a covered call in one order
Use this to buy 100 shares per contract and sell a call against them at the same time. This is also called a buy-write.
- Log in to the Wealthsimple app
- Go to the stock's options chain and tap the sell price on a call
- In the order drawer, tap Add shares to open a covered call
- Tap Next
- Enter your limit price. It shows as a net credit or a net debit for the whole position
- Submit your order
- Log in to your Wealthsimple profile
- Go to the stock's options chain and select the sell price on a call
- In the order flow, select Add shares to open a covered call
- Select Next
- Enter your limit price. It shows as a net credit or a net debit for the whole position
- Submit your order
Open a protective put in one order
Use this to buy 100 shares per contract and buy a put that protects them at the same time.
- Log in to the Wealthsimple app
- Go to the stock's options chain and tap the buy price on a put
- In the order drawer, tap Add shares to open a protective put
- Tap Next
- Enter your limit price. It shows as a net debit for the whole position, since you're buying both parts
- Submit your order
- Log in to your Wealthsimple profile
- Go to the stock's options chain and select the buy price on a put
- In the order flow, select Add shares to open a protective put
- Select Next
- Enter your limit price. It shows as a net debit for the whole position, since you're buying both parts
- Submit your order
Close a covered call position in one order
Use this to buy back your call and sell your 100 shares per contract at the same time.
- Log in to the Wealthsimple app
- Go to your Holdings (or the Expiring soon list on Home) and tap the covered call position. It's labelled with the stock symbol followed by Covered call
- Tap Close
- Review the pre-filled order: Contracts (buy to close the call) and Shares (sell to close the stock), scaled together, for example 1 contract and 100 shares. Check the Limit price, shown as a net credit or debit, and the estimated total and buying power impact
- Tap the arrow to go to Review, check the expiry (for example, "Today at 4 pm") and the limit price, then tap Submit order
- Log in to your Wealthsimple profile
- Go to your Holdings (or the Expiring soon list on Home) and select the covered call position. It's labelled with the stock symbol followed by Covered call
- Select Close
- Review the pre-filled order: Contracts (buy to close the call) and Shares (sell to close the stock), scaled together, for example 1 contract and 100 shares. Check the Limit price, shown as a net credit or debit, and the estimated total and buying power impact
- Select the arrow to go to Review, check the expiry (for example, "Today at 4 pm") and the limit price, then select Submit order
You can't enter more contracts or shares than you hold. If you try, you'll see a message and you won't be able to submit.
When it fills, you'll see Order filled, and the position disappears from your Holdings because both parts are closed.
Close a protective put position in one order
Use this to sell your put and your shares at the same time.
- Log in to the Wealthsimple app
- Go to your Holdings and tap your protective put position
- Tap Close
- Review the pre-filled order: Contracts (sell to close the put) and Shares (sell the stock), scaled together. Check the Limit price, which is a net credit because both parts are sales, and the estimated total and buying power impact
- Tap the arrow to go to Review, check the expiry and the limit price, then tap Submit order
- Log in to your Wealthsimple profile
- Go to your Holdings and select your protective put position
- Select Close
- Review the pre-filled order: Contracts (sell to close the put) and Shares (sell the stock), scaled together. Check the Limit price, which is a net credit because both parts are sales, and the estimated total and buying power impact
- Select the arrow to go to Review, check the expiry and the limit price, then select Submit order
You can't close more than you hold. When it fills, you'll see Order filled, and the position disappears from your Holdings.
Modify or cancel a combo order
You can cancel a pending combo order before it fills.
- Log in to the Wealthsimple app
- Go to your Activity and find the combo order
- Tap Cancel order
- A message says "Your order will be cancelled immediately." Tap Cancel order again to confirm
- Log in to your Wealthsimple profile
- Go to your Activity and find the combo order
- Select Cancel order
- A message says "Your order will be cancelled immediately." Select Cancel order again to confirm
Since a combo order can't partly fill, cancelling it cancels both parts.
Combo orders are limit orders, so you can also change the limit price of a pending order. Next to Cancel order, select Modify order and update the limit price. Learn more about modifying or cancelling a pending limit or stop order.
Frequently asked questions
What is a combo order?
A combo order lets you trade shares and an option on the same stock in one order, at one net price.
Can I open a covered call or a protective put in one order?
Yes. In the options chain, select the sell price on a call or the buy price on a put, then select Add shares to open a covered call or Add shares to open a protective put. Both parts fill together at your limit price or better.
Can I change the price of a pending combo order?
Yes. Combo orders are limit orders, so you can change the limit price. Go to your Activity, find the order, and select Modify order.
How do I cancel a combo order?
Go to your Activity, find the order, and select Cancel order. Then confirm by selecting Cancel order again. A combo order can't partly fill, so cancelling cancels both parts.
What happens if only part of my combo order can be filled?
Nothing fills. The order only fills when every part can be filled together at your limit price or better. You can cancel it while it's pending.
Can I use a market order?
No. Combo orders are limit orders only.
Can I close just the option, or just the shares?
Yes. You can close each part with a separate order, or close both together as a combo order. See Buy to close a covered call.
Why do I see three items in my Activity?
A combo order shows one line for the combined position and two lines under it, one for the option and one for the shares, even though they filled as one order.
Can I close a covered call or protective put position during a margin call?
Yes. Closing releases buying power, so it's allowed. Opening a new position isn't allowed during a margin call.
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