/ib-stop-loss

name: ib-stop-loss
description: Downside stop-loss management for PMCC, naked LEAPS, and stock positions in IB. Computes stop prices, detects alerts, and places conditional combo orders. Dry-run by default. Requires TWS or IB Gateway running locally.
dependencies: ["trading-skills"]

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
• **`IB_PORT` env var** — default port when `--port` is omitted (e.g. `IB_PORT=4001` for a Gateway container). Precedence: `--port` flag > `IB_PORT` > built-in default. Set it in the shell or a `.env` file.

**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