Overlapping Trades in OptionsApp: The Difference Between Gross and Net Positions
1. Overview
When multiple trades in OptionsApp affect the same financial instrument, an overlap of positions can occur. This happens, for example, when a trade opened later uses a strike that is already part of another trade, as a long in an existing spread and at the same time as a short in a new one. This applies to every instrument OptionsApp trades, that is to options as well as to stocks, ETFs and futures.
Such constellations are not an error, but an intentional feature of OptionsApp. While TWS often only displays the Net position (the netted sum of Long and Short contracts) in such cases, OptionsApp internally always manages the Gross positions of each individual trade separately.
2. Gross and Net Positions
Net Position:
In TWS, identical contracts (same symbol, Strike, expiration, and option type) are netted against each other. So if, for example, there is a Long and a Short on the same contract, the result is a Net position of zero. This net display only reflects the aggregated result, not the actual individual trades that are open.
Gross Position:
OptionsApp treats each trade independently. Even if Long and Short contracts offset in TWS, both trades remain fully intact in the App. Each trade has its own executions, Stop and Exit logic, and its own P&L calculation.
This ensures that all trades continue to be monitored correctly, even if individual Legs neutralize in TWS.
3. Behavior with Overlapping Trades
When an overlap occurs, such as when a new trade uses a leg that already exists in another trade, OptionsApp opens the new trade, provided the required approval is in place (see section 5). TWS automatically nets the long and short side on the same strike and may then display a net position of zero.
In OptionsApp, however, both trades remain separate. Each trade retains:
- its own Position and P&L logic
- own Stop and Exit mechanisms
- own Conditional Orders
This means overlapping strikes do not lead to misassignment between trades.
Example
- Trade A: Short Put 6,500 / Long Put 6,400
- Trade B: Short Put 6,400 / Long Put 6,300
When Trade B is opened, the Strike 6,400 is both sold (Short in B) and already held in Trade A (Long).
In TWS, this contract offsets, the Net position for 6,400 is zero.
In OptionsApp, however, two separate trades continue to exist.
If one of the two trades is later closed, the Net display in TWS automatically adjusts accordingly.
Explainer video
The following video explains two more examples (in German):
4. Special Cases and Technical Notes
Simultaneous Close Orders on the Same Contract
TWS does not allow placing a Buy and a Sell Close Order simultaneously on the same contract.
In this case, OptionsApp recognizes the limitation and does not open the new trade, as the Order would not be technically executable.
In all other cases, overlapping trades are opened regularly and managed separately.
Different Position Sizes
If the position sizes differ (e.g., Long 2 and Short 1 on the same Strike), a corresponding remaining position remains visible in TWS. OptionsApp also manages this constellation correctly per trade.
Temporary Price Suspension
If pricing is temporarily unavailable for a leg, for instance for a nearly worthless long, OptionsApp switches to the corresponding short stop until a market price is available again. This rebuild requires an approval of its own: Rebuilding of close orders when a leg becomes untradeable.
Why the Overlap Can Be Allowed
If OptionsApp were to prevent the new trade every time an overlap occurs, many planned contracts could not be opened at all, particularly with active strategies or fast market moves, leaving many strategies incomplete. From version 2.0 on, the user decides this by granting the approval or not.
5. Approval Required
From version 2.0 on, opening a trade that runs counter to a position held by another running trade in the same account requires an approval in the user portal. It is listed there in the Approvals area under "Overlapping positions across trades" and applies to options, stocks, ETFs and futures.
Without this approval, a trade is not opened as long as another running trade in the same account holds an opposing position in the same financial instrument. Positions in the same direction are not affected: a further short on top of an existing short is opened, a long against an existing short is not. Other trades remain untouched.
The approval changes nothing about how the trades are managed inside OptionsApp. Both trades continue to be held separately and are closed under their own rules. What changes is the portfolio view at the broker alone.
A trade is governed by the state of the approvals at the time it was opened. An approval granted or withdrawn later does not affect running trades.
The confirmation text in the approval dialog reads:
I authorize OptionsApp to open trades that run counter to a position held by another running trade in the same account, whether options, stocks, ETFs or futures. I am aware that the broker nets the two against each other in the portfolio and that the portfolio view then no longer reflects the trades separately.
Further details: Approvals in the User Portal.
6. Conclusion
Overlapping trades often result in neutral net displays in TWS. Inside OptionsApp the trades stay separate, so all position, exit and P&L rules remain clearly assigned at all times. Whether such a trade is opened at all is decided, from version 2.0 on, by the approval in the user portal.