Is it true that when executing buy-write order(s), there needs to be two orders and that both are executed at the ASK price?
The short answer is an unequivocal “maybe.” It’s possible that with a multi-part order (such as a buy-write) that the options part of the trade MIGHT occur at the ask price, but there is no guarantee. When traders enter buy-writes, they are usually entered on a single ticket, for a “Net Debit.” In this case, the prices received for the call, and paid for the stock matter only in the sense that the net dollars spent should not exceed the (debit) limit. For further information regarding buy-writes, review our online Covered Calls class.
