SogoTrade, a division of Genesis Securities, the deep discount-trading platform, has launched a proprietary options trading platform with $5 trades plus $0.65 per contract.
Top features in the new platform include streaming option-chain quotes, integrated analytics, P&L analysis for single or multi-leg strategies, theoretical price modeling with "what if" capability, and a new tool to help a trader assess the likelihood that the underlying security will reach certain price objectives or risk points.
"Tools like our integrated analytics-just roll over a quote to see theoreticals, implieds and greeks-are important for high frequency, experienced options traders, while features like our Probability Calculator and P&L Plotter can take some of the mystique out of trading options, making the connection between time, volatility and price easier to understand," says Dave Whitmore, president of SogoTrade.
The options platform has been created internally by the SogoTrade development team with the needs of both traders and investors in mind. In this phase the firm is introducing long options and covered call positions only. Multi-leg and short positions will be released in the near future.
"Options can be an exciting and lucrative instrument to trade, but they can also be quite risky. Understanding that risk requires understanding both theoretical relationships and real-world price changes," says Whitmore. "That's why we're introducing analytic features that are useful for advanced traders, as well as tools to help stock investors understand how option prices might react to underlying changes, and how they can play a role in a portfolio."