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After the close on Tuesday, we launched a new version of our trading platform. This is the first major update we’ve done to our trading tool since OptionsHouse debuted in 2007, and it has taken nearly a year of hard work to bring this to our customers.

The new platform takes all the functionality you already know (professional-grade trading tools, a customizable option chain, and one-click trading) and creates an even more controlled, more seamless trading experience.

Here are some highlights of the new patent-pending platform:

Customizable Platform Gives You More Control

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Options traders are made, not born. Even the most seasoned veterans who trade broken-wing butterfly spreads in their sleep started slowly with basic strategies such as long puts and covered calls (and they probably traded stock before that).

Option trading can and should be a gradual learning process, but what’s the best way to learn? Sure, there are websites and books that can teach the fundamentals, but others prefer to learn by doing, especially in this interactive age. (more…)

3/08/11 Update:  OptionsHouse has an iPhone App!

You can view your OptionsHouse portfolio vitals and trade via a mobile device from pretty much anywhere during market hours (except my living room, which has awful reception). To access the OptionsHouse mobile trading platform, type m.optionshouse.com into your mobile web browser and log in as usual using your username and password.

OptionsHouse Mobile Trading Platform Features:

  • Real-time views of account balances, open orders, active positions, and other useful information about your account
  • Real-time stock and option quotes
  • Access to equity research
  • Execution capability  for stock or options trades from the mobile version of our options chain

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Options traders live or die by the option chain, which is why we consistently strive to streamline and ultimately improve the options chain functionality in the OptionsHouse trading platform. Our most recent enhancements to the chain give our customers more control of their trading experience.

After logging in to your account, you can access the options chain configuration menu by clicking on the “custom” button in the upper right-hand area of the options chain.

OptionsHouse Custom Chain

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Weekly and Quarterly Options While not a new concept, Weekly and Quarterly options are gaining in popularity due to the flexibility they allow the active options trader. OptionsHouse currently enables all eligible customers to trade these options.

So what are these popular instruments? Weeklys and Quarterlys are named so because instead of the standard one-month contract term, these options have a one-week or one-quarter lifespan, respectively. They mostly have the same contract specifications as standard options and generally trade in the same way – investors can execute a Market-on-Close vertical spread with a trailing stop, for example. Traders can even combine Weeklys and Quarterlys with standard options to build complex time spreads.

Expiration and Availability

This is where things get a little interesting. All Weekly options expire on Fridays, but some settle in the morning while other settle in the afternoon. Additionally, the last trading day for Weekly options on the Dow Jones Industrial Average Index (DJX) and the S&P 500 Index (SPX) is Thursday, while the others stop trading on Fridays.

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Fast matters.  This maxim is true for every investor, whether you are seeking out a trade idea or relying on lightning-quick execution. With that in mind, OptionsHouse recently launched the ability to sign up for an account, fund that account, and begin trading, quickly and efficiently, with Electronic Signature.

A relatively recent development in the online world, the e-signature process offers the opportunity to securely (very securely) respond to a set of questions only the user can answer in order to verify their identity online.  This allows prospective customers (and existing customers looking to set up an additional account) to safely and easily sign their name to a document and fund their account without ever picking up a pen or licking a stamp.

OptionsHouse Electronic Signature

Any questions about how the electronic signature works?  Contact an OptionsHouse customer service representative toll-free at 1-877-653-2500 during our regular hours (M-F, 7 a.m. until 6 p.m. CT, except exchange holidays).  Speaking of electronic, you can also access our live help feature while you are logged into your account or send us an email at customerservice@optionshouse.com.

Over the past two years, as banks and brokerages of all sizes spar with economic volatility, investors have become increasingly curious about what measures are in place to guard their funds against any unexpected tumult at their financial institutions. Thankfully, there are federal measures in place for both banking and brokerage firms.

The Securities Investor Protection Corporation (SIPC) insures investment accounts in the event that a brokerage closes due to bankruptcy or other financial difficulties and customer assets are missing.  SIPC will replace said funds, up to $500,000 per customer (including up to $100,000 in cash) for eligible customer accounts.  (Note: The cash amount of SIPC insurance increased to $250,000 from $100,000 in September 2010).

OptionHouse’s clearing firm, Penson Financial Services, Inc. (“PFSI” or “Penson”), offers additional account protection through something called “Excess SIPC Insurance.” While OptionsHouse is confident we will be around to serve your investing needs for many, many years, we also recognize that it is important that our customers are as confident and secure as they can be. Penson recently increased this level of “excess SIPC insurance” coverage. OptionsHouse customer accounts are now protected (up to their net equity) for loss of securities and cash held at PFSI up to an overall firm aggregate of $600,000,000 across all Penson customer accounts.  This is subject to a maximum limit of $150,000,000 per customer (in securities value) and $1,900,000 (in cash value). (Note: The cash value of Excess SIPC Insurance increased to $2.15 million from $1.9 million in September 2010). This outside/supplemental insurance protection is in addition to SIPC, which is provided by the Securities and Investors Protection Act, which is administered by SIPC. For more information regarding SIPC, please visit their home page at sipc.org.

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Day Trading Alert!

Tuesday, June 22nd, 2010

Day Trading AlertToday’s trading tool tip is about the Day Trading counter, which you will only see if you are actually making Day Trades. It’s bold and red and hard to miss, but it’s important you know the facts about Day Trading.

What is a Day Trade?

A Day Trade is a single option or stock position that opens or closes during the same day. A good rule of thumb is that any trade held overnight is not a Day Trade. Simple, right? A few more important details.

1. A sell to close (buy-in) of an existing position will be treated as a liquidation and the subsequent repurchase (sale) will be treated as the establishment of a new position.  These trades will not be subject to the rules affecting Day Trades. Any other trades in the overnight position will be considered a Day trade and subjected to Day Trading rules.

Huh? All this means is that if you close something completely and then buy more of it, you aren’t making a Day Trade. (more…)

OSI albumOSI – it’s the holding company for Outback Steakhouse and it could be an acronym for an obscure 80s band. But for the past several months, these three letters have stood for one thing and one thing only  (for option traders and brokers, anyway): Options Symbology Initiative.

In an effort to streamline options symbols, increase clarity and remove limitations, the options industry gradually rolled out a massive overhaul to option symbols.  Gone are the three-, four-, and five-letter symbols that were often cryptic.  These have been replaced with a Symbology Key containing up to as many as 21 characters. (more…)

When the professional option traders at PEAK6 Investments L.P.1 began 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.

OptionsHouse Option Chain - 1(click to enlarge)

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