Links of Strength: The OptionsHouse Option Chain

When the professional option traders at PEAK6 Investments L.P.¹began to build the OptionsHouse platform, they had the goals of efficiency and ease-of-use in mind. One way the architects of the platform thought to streamline the trading experience was through the ability to execute a trade right from the Options Chain. In the same place where you can see changes in option prices, track implied volatility, and view the “Greeks,” you can place an options trade in a handful of steps.

Step One: Click on the “Options” tab (second from the left) at the Top of the Trading Tool to access the option chain. Make sure the appropriate ETF, index, or stock ticker has been entered in the Quote Lookup box.

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Step Two: From the option chain, navigate down to the desired month (call options are on the left, put options are on the right). To initiate a sell order, left-click on the bid price for your option of choice; to initiate a buy order, click on the ask price. In the image below, I clicked on the bid price for the July 200 Apple call.

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Step Three: Select the desired trading action from the pop-up menu.

Step Four: Verify the information on the order ticket. This is where you can change prices or quantities, add option or stock legs, and set the type of order (day order, good-til-cancelled, etc.). Once you have verified everything is correct, click “preview” to confirm your order.

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Step Five: If the order parameters are correct in the preview screen, click “place order.” If not, click “revise” or “cancel.”

Order execution via the option chain is simple, it’s efficient, and it’s intuitive. Most importantly, it can help thwart human error. Although orders can be placed quickly, there are safeguards in place to ensure that an itchy trigger finger doesn’t result in unintended trades!

More Option Chain Features to Note

• You can switch your options chain from “basic” to “pro” by clicking on the “go pro” button at the top of the chain. This adds columns such as implied volatility, delta, and theta – important factors to consider when planning your next option trades.

• Want delta to stand out? Need to highlight implied volatility? Customize your option chain by changing the color of any column. Simply left-click on your column of choice and pick from wide color palette. There is no limit to the customization, so go wild!

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• Want an even more customized view? Click on the tools icon at the top right (circled above) and you will have access to tools that allow you to: view only at-the-money options, expand all un-collapsed monthly series, and more.

As always, if you have any questions, please call Customer Service toll free at 1-877-653-2500 or access Live Help from the home page.