P&L Actions: Overview

Updated: July 2, 20251 min read

P&L Actions in OptionsApp allow you to set rules for automatically closing trades or individual legs based on profit, loss, or time conditions. They're a central part of every trade configuration and enable detailed risk management as well as the implementation of different trading strategies.

1. Overview of P&L Actions

Under the term "P&L Actions" (Profit & Loss Actions), OptionsApp combines the following three mechanisms:

Profit Target: Realizing profits at defined profit thresholds (see Profit Target)
Stop Loss: Limiting losses by closing at a predetermined Stop Loss value
Early Exit: Planned early exit, for example, a few minutes before expiration or before market close (see Early Exit)

Additionally, a Stop Loss can be extended through Adjustments, so that at a certain option price the Stop is dynamically adjusted (see: Adjustable Stop).

2. Application Levels

In OptionsApp, you can set P&L Actions at three different levels:

a) Leg Level (individual options leg)

The action is applied directly to the Main Leg of a group.
Only this one Leg (e.g., a Short Put or Short Call) reacts to the set P&L Actions.

b) Group Level (e.g., Put side of an Iron Condor)

The P&L Action applies to all Legs within a specific group.
Typical use: A Stop Loss or Profit Target for the Put or Call side independently.

c) Combo Level (the entire Trade Template)

The action applies to all groups within a Template.
Frequently used in complex setups like Iron Condors or Strangles to close the entire trade as one unit.

3. Orientation Guide for Levels

Leg: For targeted management of individual Short Legs (e.g. only a single Call is stopped out)
Group: When the Put and Call sides should be considered separately (e.g. Iron Condor)
Combination: When looking at the trade as a whole (e.g. closing the entire Iron Condor at the profit target)

4. Detailed Description of Individual P&L Actions

Profit Target
Stop Loss
Adjustable Stop
Early Exit
ITM Protection