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.

IB Connection

TWS or IB Gateway must be running locally with API enabled:

• Paper trading — port 7497
• Live trading — port 7496

Port fallback: If the configured port fails, automatically retry on the other port. If the retry succeeds, save to memory which account type worked (live/paper) and reuse it for all IB skill calls in this and future sessions — until the user explicitly asks for the other account. If both ports fail, ask the user to verify that TWS or IB Gateway is running with API access enabled.

Instructions

Step 1: Run the script

Dry-run (default — no orders placed):

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

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

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

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

uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --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 | 7497 | 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