Manual Trading

Not all trading has to be automated. Learn how to manually open and close positions directly inside Option Alpha. Plus, you can still automate position management and create hybrid trading strategies.

While automation offers powerful tools for streamlining your trading strategies, many traders prefer to take a more hands-on approach. Option Alpha’s platform provides robust capabilities for manual trading, giving you the flexibility to open and close positions directly from various sections of the platform. Whether you prefer to trade manually or blend manual and automated strategies, the platform offers the tools you need to succeed.

Flexibility in Manual Trading

One of the key advantages of manual trading on Option Alpha is the flexibility it offers. You can initiate manual trades from multiple areas within the platform, allowing you to choose the most convenient location for entering your trades. This adaptability means you can act quickly on market opportunities without being confined to a single method or section of the platform.

The ‘New Position’ Window

At the heart of manual trading on Option Alpha is the universal New Position window. This window is designed to streamline the process of opening new positions, providing a consistent and user-friendly interface no matter where you access it from within the platform.

Key Features of the New Position Window

• Symbol Selector: Quickly choose the ticker symbol for the security you wish to trade.

• Strategy Type Selector: Select from a variety of trading strategies to tailor your position to your market outlook.

• Expiration Selector: Easily choose the expiration date for your options, helping you align your trade with your time horizon.

• Access to Visual Charts: The New Position window also provides access to several visual charts, offering deeper insights into market conditions:some text

  • Main Pain Theory: Analyze the potential pain point for options sellers.

  • Open Interest: View where traders are most heavily positioned in the options market.

  • Daily Option Volume: Track the daily trading volume for options.

  • Implied Volatility Skew: Examine the skew of implied volatility across different strikes.

  • Historical vs. Implied Probability of Expiring ITM: Compare historical probabilities with current implied probabilities to make informed decisions.

• Quantity Control: You have full control over the number of contracts or shares you wish to trade, allowing you to scale your position size according to your strategy.

• Final Price Setting: The final price is the amount you are willing to accept when selling an option or the maximum you are willing to pay when buying. This price is determined by SmartPricing and defaults to 100% of the bid/ask spread if not specified. You can adjust this to suit your trading preferences, ensuring you’re comfortable with the terms of your order.

• SmartPricing Preferences: Option Alpha’s SmartPricing feature lets you choose the speed at which your order is executed. You can select from:some text

  • Normal: A balanced approach to pricing.

  • Fast: Prioritizes speed over price.

  • Patient: Focuses on getting the best price, even if it takes longer.

  • Market Order: Executes the order immediately at the current market price.

  • Turn Off SmartPricing: Submit a single limit price without SmartPricing’s intervention.

• Bot Assignment: Every manual position must be assigned to a bot. This is because a bot acts as the container or “home” for the position, providing the necessary services to monitor and manage it effectively. This requirement ensures that even manually entered positions benefit from the same robust management features as automated ones.

• Exit Options: The New Position window allows you to set exit options for your trade from the start. Once set, these options are assigned to the position for its entire lifecycle, reducing the need for further management and making the process more convenient.

Manual trading on Option Alpha is designed to give you full control over your trades while still benefiting from the platform’s powerful automation tools. The universal New Position window centralizes all the features you need to make informed decisions and manage your trades effectively. By combining manual trade entry with automated position management, you can create hybrid strategies that leverage the best of both worlds, allowing you to respond to market conditions with precision and confidence.