NEW: Real-time data in Trading Tools
Connect now

In the Media

Thursday, June 27th 2019

Lothian Interview: How to get people to trade options

How to get people to trade options? Start with seeing how the VIX relates with market movement. Introduce other relationships. Learn about options. Trade.

Free Trial
Get a free trial of ORATS trading tools by completing this quiz
Take the quiz

Summary

ORATS is trying to get people from the stock-only or long-short markets into trading options. They start by looking at the VIX and other options volatility relationships, such as skew and term structure, to help people understand how the market might behave in the future. By introducing these relationships, ORATS hopes to evolve its offering and get the attention of a much bigger market, the stock trading market, and get them using options.

We talked to people here at the Options Industry Conference, but what we're trying to do is get people in from the stock-only or the long-short, or even private equity into trading options. Those are much larger markets.

What we do as experienced options professionals is help people new to options look at, for example, the VIX, and they say, "Okay. Well, I can see how the VIX moves when the market was having trouble." This is a good way to get people thinking about options

But at ORATS, we are introducing people to other types of options volatility relationships. Be they skew relationships, or term structure relationships, we look at the how these relationships affect how the market might behave in the future.

This is a big way, not only to evolve our offering at ORATS, but also to get the attention of a much bigger market, the stock trading market, and get them using options. The first step to get them trading options is to see the information as maybe a technical indicator for their own trading. Then they start to learn about options and then they start to trade. That's where I think the evolution's going, at least for us.

Disclaimer:

The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors.

All opinions are based upon information and systems considered reliable, but we do not warrant the completeness or accuracy, and such information should not be relied upon as such. We are under no obligation to update or correct any information herein. All statements and opinions are subject to change without notice.

Past performance is not indicative of future results. We do not, will not and cannot guarantee any specific outcome or profit. All traders and investors must be aware of the real risk of loss in following any strategy or investment discussed herein.

Owners, employees, directors, shareholders, officers, agents or representatives of ORATS may have interests or positions in securities of any company profiled herein. Specifically, such individuals or entities may buy or sell positions, and may or may not follow the information provided herein. Some or all of the positions may have been acquired prior to the publication of such information, and such positions may increase or decrease at any time. Any opinions expressed and/or information are statements of judgment as of the date of publication only.

Day trading, short term trading, options trading, and futures trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/ or a low tolerance for risk. Never execute a trade unless you can afford to and are prepared to lose your entire investment. In addition, certain trades may result in a loss greater than your entire investment. Always perform your own due diligence and, as appropriate, make informed decisions with the help of a licensed financial professional.

Commissions, fees and other costs associated with investing or trading may vary from broker to broker. All investors and traders are advised to speak with their stock broker or investment adviser about these costs. Be aware that certain trades that may be profitable for some may not be profitable for others, after taking into account these costs. In certain markets, investors and traders may not always be able to buy or sell a position at the price discussed, and consequently not be able to take advantage of certain trades discussed herein.

Be sure to read the OCCs Characteristics and Risks of Standardized Options to learn more about options trading.

Free Trial
Get a free trial of ORATS trading tools by completing this quiz
Take the quiz
Contact Us
Questions about the API requirements? Want to become an affiliate? Curious about the backtester? Leave us a message and we'll get back to you shortly.
Your email
Your message
Submit
ORATS University
ORATS University
Master the art of options
Research
Implementation
Risk
Review
The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors. For more information please see our disclaimer.
Interactive Brokers is not affiliated with Option Research & Technology Services, LLC and does not endorse or recommend any information or advice provided by Option Research & Technology Services, LLC.