Suggested features for options systems


C2 is a great resource for recording and reporting on the result of entering trades.

Options traders, though, need to be able to see the current value of the underlying security, not just the prices of the particular options traded.

The underlying price is also a useful trigger for firing off conditional options orders, in a brokerage account.

1) It would be most useful if all screens that report options prices also showed the price of the underlying at that moment, and they were included in any option price reports.

This is especially important to allow everyone to see immediately when an option has moved Into-The-Money and so may be more likely to be assigned.

2) It would make trading the options of multiple underlying stocks much easier if the conditional orders could be set to “move up (or down) the option chain” if the stock price passes the existing option’s strike price, so the old trade can be closed and a new trade initiated with the next strike price.

This way system creators wouldn’t have to watch the underlying price every minute that the exchange is open to check if a move up or down the option chain should be initiated, and usefully ensures that “auto-trading system followers” don’t risk assignment.

AAPL today (April 5th 2012) went up $10 and so would have moved through 2 strike prices (600 and 605) and is just $0.06 short of breaking 610, and on reviewing historical data, on some days it went through 4 strike prices.

Link to my system: