ib-stop-loss

IB Stop-Loss Manager

Analyzes PMCC (diagonal call spread), naked LEAPS, and stock positions in the IB portfolio and manages conditional stop-loss orders.

Default mode is dry-run — no orders are placed unless --execute is in the request.

Prerequisites

TWS or IB Gateway running locally with API enabled:

• Live trading: port 7496
• Paper trading: port 7497

Instructions

Step 1: Run the script

Dry-run (default — no orders placed):

uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --port 7496

Execute (cancel orphan orders + place SL_ conditional orders):

uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --port 7496 --execute

Execute forced (basis = current mid price, can lower existing stops):

uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --port 7496 --execute --forced

Step 2: Format the report

Format JSON output as a markdown report with four sections:

Section 1: Alert Soon

List symbols in alert_soon prominently — these are past the early-warning threshold.

Section 2: Existing Conditional Orders

Show all_conditional_orders.module (SL_ orders) and all_conditional_orders.manual (manually placed). If orphan_orders is non-empty, warn that these were cancelled (execute mode) or need manual cancellation (dry-run).

Section 3: Positions

For each entry in positions, show a table:

| Field | Value | |---|---| | Symbol | NVDA — pmcc (3 contracts) | | Spot | $219.05 | | LEAPS | 200C 20270115 · avg cost $44.27 · current $44.23 · basis $44.27 | | Stop price | $22.14 (40% stop) → action: place_new | | LEAPS loss | 0.1% | | Shorts | 235C 20260515 · received $0.61 · current $0.56 · 9.5% decayed |

Show preserve_existing when a more-protective stop already exists. Show overwrite (red) when forced=true lowers an existing stop.

Section 4: Alerts

Group alerts by symbol. Types:

| Type | Meaning | |---|---| | leaps_early_warning | LEAPS down ≥ stop_pct/2% from basis | | short_premium_decay | 90%+ of short premium captured — close or roll | | short_near_strike | Spot at/above or within X% of short strike |

Step 3: Report to user

• State dry-run vs execute mode prominently.
• Lead with alert_soon symbols.
• For each position: show stop action and current loss %.
• Show alerts section last.

Arguments

| Flag | Default | Description | |------|---------|-------------| | --port | 7496 | IB Gateway/TWS port | | --account | all | Specific account ID | | --symbols | all | Analyze only these symbols | | --legs | none | Specific option legs: SYMBOL:STRIKE[C\|P]:EXPIRY (e.g. IBKR:70C:20270115 IBKR:100C:20260918). Right defaults to C. Takes precedence over --symbols. Use when multiple PMCC/LEAPS coexist on the same symbol and only one pairing should get a stop. | | --stop-pct | 40 | Loss % that triggers exit | | --short-near-strike-pct | 5 | Near-strike alert threshold | | --price-mode | mid | Option pricing: mid or last | | --execute | off | Cancel orphans + place SL_ orders | | --forced | off | Use current mid as basis (requires --execute) |

JSON Output Structure

{
  "generated_at": "2026-05-12 10:00 ET",
  "dry_run": true,
  "forced": false,
  "stop_pct": 40.0,
  "short_near_strike_pct": 5.0,
  "accounts": ["U1234567"],
  "symbols_filter": null,
  "all_conditional_orders": {"module": [], "manual": []},
  "orphan_orders": [],
  "alert_soon": ["PFE"],
  "positions": [
    {
      "symbol": "NVDA",
      "type": "pmcc",
      "account": "U1234567",
      "qty": 3,
      "underlying_price": 219.05,
      "leaps": {
        "strike": 200.0, "expiry": "20270115", "avg_cost": 44.27,
        "current_price": 44.23, "stop_basis": 44.27,
        "stop_price": 22.14, "loss_pct": 0.1
      },
      "shorts": [
        {"strike": 235.0, "expiry": "20260515",
         "premium_received": 0.61, "current_price": 0.56, "decay_pct": 9.5}
      ],
      "stop_loss": {"stop_price": 22.14, "action": "place_new", "existing_stop": null},
      "alert_soon": false,
      "alerts": []
    },
    {
      "symbol": "AAPL",
      "type": "stock",
      "account": "U1234567",
      "qty": 100,
      "underlying_price": 189.50,
      "stock": {
        "avg_cost": 175.00, "stop_basis": 189.50,
        "stop_price": 94.75, "loss_pct": 0.0
      },
      "stop_loss": {"stop_price": 94.75, "action": "place_new", "existing_stop": null},
      "alert_soon": false,
      "alerts": []
    }
  ]
}

Key Fields

• alert_soon — top-level list of symbols where loss ≥ stop_pct/2%
• position.type — pmcc | leaps | stock
• stop_loss.action — place_new | preserve_existing | overwrite
• stop_loss.existing_stop — price of the existing SL_FALL_ order if present
• For PMCC: stop order is a single combo (BAG) order closing LEAPS + all shorts atomically
• In execute mode: orphan SL_ orders (no matching position) are cancelled first

Order Identification

• SL_FALL_{SYM}_{STRIKE}_{EXPIRY} — options (PMCC or naked LEAPS)
• SL_FALL_{SYM}_STK — stock positions

Architecture

All analytics live in src/trading_skills/broker/stop_loss.py:

Analytics (no IBKR — testable in isolation):

• calc_stop_basis — max(mid, avg_cost) normally; current_mid if forced
• calc_stop_price — basis × (1 - stop_pct/100)
• calc_short_premium_decay_pct — % of short premium captured
• identify_positions — classify normalized positions into pmcc/leaps/stock
• build_position_analysis — full per-position output dict
• detect_orphan_orders — SL_FALL_ orders for gone positions
• summarize_all_conditional_orders — splits IB orders into module vs manual

Data layer (IBKR):

• get_stop_loss_data — main entry point
• _cancel_orphan_orders — cancel stale SL_ orders
• _place_combo_stop_order — BAG order for PMCC (atomic LEAPS + shorts)
• _place_simple_stop_order — single order for naked LEAPS or stock
• _execute_position_stop — dispatch per position type