Options Trading
Those new to trading can find the options market complex and daunting, but with the right software, it can be relatively simple to navigate. By using advanced software, traders can benefit from strategies that can work toward longterm gains.
Option prices are determined by the time to expiration, option type, the underlying stock price, strike price and the volatility of the underlying stock. Here are a few strategies and software offerings in the UK:
Strangle: This strategy involves both calls and puts having different strike prices. It is designed to pay off if the stock moves a great deal in either direction, but, unlike a straddle, benefits even more if the stock moves a great deal more sideways.
Collar: This strategy consists of a call option purchased with a strike price slightly above the current market price and a put option with a strike price just below the current market price. Covered calls are an easier form of options trading, primarily used to reduce holdings by selling against an existing investment.
Trading software is an asset for any option trader. In the UK, software providers such as TradersEdge, QuantDesk and TradeStation offer a range of options trading products.
TradersEdge provides a platform for intra-day technical analysis, including a suite of customised components and templates, as well as an AI-driven sorting tool. QuantDesk includes an advanced proprietary scan engine and offering powerful automated strategies. TradeStation offers traders amazing speed, flexibility and backtesting capabilities, as well as sophisticated options strategies.
Additionally, NextView offers a suite of advanced trading tools and analytics, designed to facilitate what they call 'power trading'. These tools include algorithmic streaming scanners and advanced charting, making it easy to execute sophisticated strategies like pairs trading.
In conclusion, options trading can be a useful strategy when applied correctly with the right software. Software offerings in the UK such as Trader'sEdge, QuantDesk, TradeStation and NextView provide tools that can support traders with executing efficient strategies.
UltraAlgo delivers easy to understand Options data to improve your understanding of the stock market with a little help from artificial intelligence. Combined with our industry leading trading algorithms. Our brokerage intergations include: TradeStation, ToS (ThinkorSwim), TD Ameritrade, Interactive Brokers and TradingView. Our products are designed by veteran quants with 20+ years of experience in high frequency trading for hedge funds and banks.
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