Interactive Brokers (IBKR) is the broker most often described with phrases like "incredibly powerful" and "incredibly difficult to use." Both are true. Trader Workstation (TWS) is the most capable retail-accessible options platform on the market, and it has the steepest learning curve.
For covered call sellers specifically, IBKR offers two real advantages: the lowest per-contract fees in the industry (around $0.15-$0.65 depending on tier and volume), and portfolio margin for accounts above $110K — which can dramatically improve capital efficiency for active options writers.
The cost is the platform itself. This post is the simplest path through TWS for placing a covered call. Once you know it, IBKR is great. Until you know it, IBKR is bewildering.
Prerequisites
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An IBKR account with options trading approval. IBKR's options approval is more granular than other brokers. For covered calls you need at least "Level 1" or its equivalent (the exact label varies). Apply via Account Management.
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100+ shares of the underlying. As always.
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Familiarity with which IBKR platform you're using. IBKR offers TWS (desktop, the powerhouse), Client Portal (web, simpler), and IBKR Mobile (limited). This guide focuses on TWS because it's where serious options sellers operate.
Step 1: Open the Option Chain in TWS
TWS opens with a customizable layout. The defaults are not friendly. Here's the simplest path to a covered call:
- In the symbol input at the top, type the underlying ticker (e.g., MSFT) and press Enter.
- Right-click the resulting line in your watchlist or quotes panel and select "Option Chains" → or click the "Options" icon in the toolbar.
- The chain opens in a new window. By default it shows all strikes and a combined call/put view.
The chain is dense. Customize:
- Show only calls: Use the filter at the top.
- Limit expirations: Click the expiration row and check only the dates you care about (typically 30-45 DTE for income writing).
- Show delta: Right-click a column header → Customize Layout → add Delta. (Delta isn't always visible by default in TWS.)
Once configured to your taste, you can save the layout. Saved layouts persist across sessions.
Step 2: Find Your Strike
Same exercise: find the strike where the call delta matches your target. For 0.22 delta at 35 DTE, scan that expiration's call list for delta near 0.22.
Note the bid and ask. TWS shows these in real-time, with the spread highlighted.
Step 3: Open the Order Ticket
Right-click the bid for your chosen strike and select "Sell" → "Limit Order" (or just click the bid, which often opens a sell ticket directly — depends on your settings).
The order ticket in TWS is more complex than other brokers'. Key fields:
- Action: Sell
- Quantity: Number of contracts
- Order Type: LMT (Limit) — never MKT
- Limit Price: Set between bid and ask
- TIF (Time in Force): DAY (default) or GTC
- Outside RTH: Off (regular trading hours only is the default and what you want)
The "Sell to Open" vs "Sell to Close" distinction in TWS is implicit — if you don't already have a position in this contract, the sell will be opening; if you do, it'll close. TWS doesn't force you to label it explicitly the way Webull does. This is fast for experienced users and confusing for beginners.
Step 4: Pre-Trade Algo and Routing
This is where IBKR diverges from other brokers. The default routing is "SMART" which routes to whichever exchange has the best price. For most retail orders this is fine.
Advanced users can specify the destination exchange (BOX, ISE, CBOE, etc.) but for covered call writing on liquid names, SMART routing is the right default.
You may see additional fields like:
- Algo: Off / SMART / specific algorithms. Leave at default for a simple limit order.
- Discretionary Amount: Allows the order to fill within a tighter price band than your limit. Leave at 0.
- Volatility / IV: Used for advanced volatility-based orders. Not needed for a simple limit.
Ignore the advanced fields. A simple limit order with SMART routing is the right tool for a covered call.
Step 5: Submit
Click "Transmit" (TWS terminology — equivalent to "Submit" or "Place Order" on other brokers).
TWS may show a confirmation dialog with the order details. Verify the strike, expiration, quantity, and limit price. Confirm.
The order goes to the market. Fill behavior is the same as any broker — usually fast on liquid names with a between-bid-and-ask limit.
Step 6: Manage the Position
Once filled, the position appears in your Portfolio panel. Right-click the option position to see actions: Close Position, Roll, etc.
To close (buy to close the short call):
- Right-click the position → "Close Position" → "Buy to Close" → "Limit Order."
- The ticket pre-fills with current bid/ask.
- Set a limit price you're willing to pay to close.
- Submit.
To roll (close the existing call and open a new one further out):
- Right-click the position → "Roll Position" — TWS provides a guided roll workflow.
- Select the new expiration and strike.
- TWS calculates the net debit/credit of the roll.
- Submit as a single multi-leg order.
The roll workflow in TWS is genuinely better than most brokers' — it's a single combo order rather than two separate trades, which means the fill is atomic and the bid/ask spread risk is reduced.
What IBKR Does Better
Three real advantages for covered call sellers:
Lower fees. $0.15-$0.65 per contract depending on tier and volume. On a 200-contract-per-year writer at $0.30/contract on IBKR vs $0.65/contract on Schwab, that's $70 in saved fees annually. Not life-changing, but real.
Portfolio margin (for accounts > $110K). Allows margin requirements to be calculated based on portfolio risk rather than position-by-position. For active options writers, this can dramatically increase capital efficiency. Not relevant for a 100-share covered call writer; very relevant for a writer running CSPs and short strangles across a $200K+ account.
Routing transparency. IBKR lets you see exactly which exchange filled your order. Most brokers obscure this. For a serious trader, the transparency is valuable.
Volatility Lab (built into TWS). Tools for analyzing IV regime, term structure, and skew. Useful for picking expirations and strikes based on actual vol dynamics.
What IBKR Does Worse
The honest drawbacks:
Steep learning curve. TWS is intimidating. The first few times using it, you'll feel like you're flying a 747. After a few weeks of use, it becomes second nature, but the on-ramp is real.
Less educational content. IBKR assumes you already know what you're doing. The educational resources are okay but not in the same league as Fidelity or Schwab.
Customer service is less hand-holding. IBKR support is competent but not coddling. If you need someone to walk you through your first covered call, Fidelity is a better fit.
Mobile experience is weaker. IBKR Mobile is functional but limited. If you trade primarily from your phone, you'll be happier on Webull or Fidelity.
TWS Tips That Help
A few small things that make TWS more pleasant:
Save your layout. Once you have the chain, portfolio panel, and order ticket arranged the way you like them, save it. TWS lets you create multiple saved layouts (e.g., "Options," "Stocks," "Research").
Use the "Combo Orders" workflow for rolls. As mentioned above. Atomic multi-leg fills.
Configure the chain to show only what you need. Default chain has too many columns. Strip it down to: Strike, Bid, Ask, Last, Volume, OI, Delta, IV. Anything else is noise for income writing.
Use the "Trade Tab" for cleaner order entry on simple trades. TWS has multiple ways to place orders. The Trade Tab is the simplest for one-off trades. The chain right-click is faster once you're used to it.
Common Mistakes on IBKR
Wrong order type. TWS has dozens of order types. For covered calls, you want LMT (Limit). Don't accidentally pick MKT, REL, or any of the algorithmic orders.
Wrong contract. TWS's chain is dense and it's easy to click the wrong row. The order ticket shows the contract before submission — read it carefully.
Forgetting earnings. No automatic flag in the basic chain. Volatility Lab can help, but the simple workflow is to check earnings on a separate calendar or use a screener that flags it.
Confusing margin requirements. If you have portfolio margin and you're covered (long stock + short call), the requirement is essentially zero. If something looks wrong with the buying power impact, double-check the cover.
Trying to use IBKR Lite for active trading. IBKR Lite is the fee-free tier with payment-for-order-flow and slightly worse fills. For active options writing, IBKR Pro is worth the per-contract fee. The fill quality difference matters when you're running 100+ contracts a year.
Is IBKR Right for You?
IBKR is the right answer if:
- You have $110K+ and would benefit from portfolio margin.
- You write a lot of contracts and the fee savings matter.
- You want maximum transparency and control.
- You're comfortable learning a complex platform.
IBKR is not the right answer if:
- You're new to options and want hand-holding.
- You trade primarily from mobile.
- You write only a few contracts a year (the fee savings don't justify the learning curve).
For most retail covered call sellers with portfolios under $100K, Fidelity or Schwab is more pleasant. For sophisticated, active options writers, IBKR is the best tool.
Tooling
The TWS workflow is fast for someone who knows it. It's still serial — one position at a time, one ticker at a time. For multi-position screening, Myron connects to IBKR through SnapTrade, screens the whole portfolio at once with your delta/DTE filters, and routes orders back to IBKR. The TWS mechanical workflow remains; the screening just happens upstream.
For broker comparisons, see Selling Covered Calls on Schwab, Selling Covered Calls on Fidelity, and Selling Covered Calls on Webull.