Examples

Covered Call Position Life Cycle

This page illustrates how covered call positions can be opened, closed, and scalped within Toll Booth Trading. These diagrams are conceptual; they do not reflect live data.

Important: hypothetical illustrations intended primarily for financial professionals. Retail viewers should treat as educational only. See Performance Disclosures.

Hypothetical/Illustrative: Figures and examples on this page are hypothetical and for illustration only; they do not represent actual results. Assumptions, inputs, and model limitations materially affect outcomes. Options involve risk; losses can exceed premiums received. This content is not investment, tax, or legal advice. See Performance Disclosures and Legal.

Opening Flow

SELL_TO_OPEN credit call from candidate selection through active position.

graph TD
    A[Start] --> B[Viability checks, PM approval, OPR flags, EDM/EPR gates]
    B --> C[Candidate selection, short call]
    C --> D[Price and risk clamps]
    D --> E[Place LIMIT]
    E --> F{Filled?}
    F -- Yes --> G[Persist Order/Position]
    G --> H[Active position]
    F -- No --> I[Remain open / retry within constraints]

Closing Flow

Rules-based closing by target returns or risk triggers.

graph TD
    A[Active position] --> B{Close decision}
    B -->|Return target achieved| C[Buy to close LIMIT]
    B -->|Risk/Rule triggers, EPR Up, HTB + early assignment risk| C
    B -->|At expiration window| D[Allow to expire]
    C --> E[Persist close]
    D --> E
    E --> F[Position state updated]

Scalp Flow

Equity scalp context with buy-limit open/close and guardrails.

graph TD
    A[Signal triggers] --> B[BUY LIMIT open]
    B --> C{Filled?}
    C -- Yes --> D[Constraints check, max dollar distance, cash caps]
    D --> E[BUY LIMIT close]
    E --> F{Filled?}
    F -- Yes --> G[Persist trade result]
    F -- No --> H[Remain pending / cancel by rules]
    C -- No --> H

Summary

Opening: candidates pass approval and risk gates; orders are placed with clamps and persisted once filled.
Closing: positions exit on profit targets, rule-based risk triggers, or by expiration handling; state is persisted.
Scalps: signals drive short-duration buy/close cycles subject to cash and distance constraints.