# Exit Options

## Exit Options

Exit Options enable us to pre-set exit criteria, so bots can manage our positions automatically throughout the day. Plus, orders are only sent to the broker when your criteria is met, so you no longer need to worry about having resting orders exploited while sitting in an order book (say goodbye to stop-hunting market makers).

{% embed url="<https://vimeo.com/1114281456>" %}

#### 1-minute auto position management

Exit Options check your position every minute and send a closing order if your exit criteria are met.

#### Instant Exit Options

Live bots can enable Instant Exit Options, which continuously monitor and update position returns and respond to changes in the leg and underlying pricing.

#### Scheduling Exit Options

Exit Options can run from 9:31 am ET until 1 minute before the market close. You can customize the Exit Options schedule in your [Settings](https://app.optionalpha.com/settings#schedule).

<figure><img src="https://2799944806-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYjluAVRcRcfh1YL43z%2Fuploads%2FTr8KCpksMb6xvP6BSPO6%2Fimage.png?alt=media&#x26;token=e8c71dc9-b58a-4b0d-860b-229daa4c7d1b" alt=""><figcaption></figcaption></figure>

Exit Options always run, even if your automations inside a bot are turned off, so your positions are always managed, unless you turn off Exit Options in your bot (see below).

Exit Options use a position's mid-price when evaluating returns. (**Note**: you can use a [bid-ask guard](https://optionalpha.com/workshops/trailing-stops) to disable Exit Options from closing a position or tracking the high % or low % of the position if the bid-ask spread is wide).

#### Exit Option Management Criteria

You can customize each position's Exit Options for specific management using six triggers:

* Profit Taking
* [Profit Target](https://app.optionalpha.com/community/updates/post/opening-range-breakout-profit-target-e-2025061610005)
* [Price Target](https://app.optionalpha.com/community/updates/post/opening-range-breakout-profit-target-e-2025061610005)
* Stop Loss[‍](https://optionalpha.com/blog/trailing-stop-exit-options)
* [Trailing Stop](https://optionalpha.com/blog/trailing-stop-exit-options)[‍](https://optionalpha.com/blog/new-exit-option-for-itm-price-touches)
* [Touch](https://optionalpha.com/blog/new-exit-option-for-itm-price-touches)‍
* Expiration
* Earnings

<figure><img src="https://2799944806-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MYjluAVRcRcfh1YL43z%2Fuploads%2FxJBDq8VYqYJMWN2MfoYL%2Fimage.png?alt=media&#x26;token=76c99408-e3d5-4da1-b498-6499a8b5b486" alt=""><figcaption></figcaption></figure>

> **Note:** There is no guarantee that an order will fill in a live market. It is possible that a position won't close when an order is sent to your broker for execution. Markets move fast, and bid-ask spreads can be volatile. Orders triggered by an exit option will remain active for two minutes; during that time, no additional orders will be sent to your broker. If the order is not filled, exit options will resume checking the position at the next 1-minute interval. When using the 'Expiration' setting, the bot will continue sending orders for the remainder of the trading day if the order does not fill at the specified time.
>
> Also note that there is no guranatee that a stop loss or trailing stop value will be the exact closing value. A closing order is triggered when the position's mid-price is at or beyond the stop loss value, but it is possible that the realized loss will exceed the expected value.

#### Exit Option closing orders

You can use [SmartPricing](https://optionalpha.com/help/smartpricing) when closing a position, turn off SmartPricing, or use a market order.

Exit Option orders are automatically canceled after two minutes. If an order is not filled, Exit Options will check your position at the next interval and, if necessary, re-start the process of sending orders to your broker if the exit criteria are still met.

{% hint style="info" %}
Profit Taking Exit Options are a special scenario. Profit-taking Exit Options set the final price to your profit-taking level to ensure your minimum profit target is received if the order fills. You don't need to set a "Final Price" because the final price is automatically set by the bot to a price that locks in the profit you specified. It won't try a worse price that would result in profit less than your specified amount.
{% endhint %}

The Before Expiration and Before Earnings triggers operate based on calendar days in the same way 'days to expiration' is calculated and will execute at 3:29 pm ET if using a day-based selection. For example, if today is Friday, a position expiring on Monday is considered 3DTE. When using an exit trigger for Before Expiration or Before Earnings, it's the traders responsibility to be aware of how weekends and market holidays will affect the contract's days to expiration value.\
\
If you check the PDT box, the bot will wait at least one day to close a position to avoid [pattern day trading](https://optionalpha.com/learn/day-trading-rules).

We can also use the [bid/ask guard](https://optionalpha.com/blog/expanded-smartpricing-settings-control-slippage) to protect from temporary price fluctuations. You set the maximum width of the position's bid/ask spread you are comfortable with, and if the position exceeds this value, it will disable Exit Options from closing a position or tracking the high % or low % of the position until the bid/ask spread is below your setting.

[Save your Exit Option criteria as a Preset](https://optionalpha.com/blog/exit-options-presets) to be reused for similar position types. You can name your presets for easy identification. All Exit Options will automatically populate when you use a Preset.

#### Using Exit Options

You can set your Exit Options for any trade when opening positions manually or in an automation's Open Position action. When using Exit Options in an Open Position action, all positions opened in the automation will have the same entry criteria. Once opened, Exit Options are specific to each position. You can always edit each position's Exit Options at any time after it is opened.

Additionally, you can enable and disable Exit Options from the main Bots page, inside of the bot as shown below, or individually within each position.

<figure><img src="https://cdn.prod.website-files.com/5fba23eb8789c3c7fcfb5f31/66c89d06f0d19a8e0191ba88_66c89c8b1a28b9803f225de3_automation-toggles.png" alt=""><figcaption></figcaption></figure>

#### Using Automations to Update Exit Options

Update Exit Options inside an automation for added flexibility and complete control, all while still enjoying 1-minute automated position management.

This video demonstrates how to use automation actions to set (and re-set) Exit Options whenever and however you want. Modify profit targets and stops for different market conditions, position returns, days in trade, days until expiration, market events, and much more.