Looking for a tool to automate option bid offer on the base of underlying price

[arturo100]

Hi everyone. I am looking for a tool that would allow me to continuosly update my bid offer on US equity options depending on the price of the underlying. It is a tool similar to the one used by market maker, but is should follow two simple rules:
Call options:
1) If the last underlying price is smaller than this, cancel the offer
2) If the last underlying price is bigger than this, place the offer (bid)

Put options:
The above 2) points reversed.

Ideally I would like to stick to my broker (IB), but I am willing to consider other options.
Thanks in advance.

Arturo.

 

[Robert Morse]

Actant is very expensive and more of an institutional tool but does that though scripting. I do not recommend these types of orders and Vol orders as they will likely you exceed the 390/day threshold and tag you as a pro customer vs priority customer.

 

[arturo100]

Actant is very expensive and more of an institutional tool but does that though scripting. I do not recommend these types of orders and Vol orders as they will likely you exceed the 390/day threshold and tag you as a pro customer vs priority customer.

Thanks Robert. I appreciate your prompt and competent comments.

 

[nooby_mcnoob]

https://interactivebrokers.github.io/tws-api/modifying_orders.html

 

[TommyR]

IB is not suitable for this. you need a connection which messages you when the book changes without you having to make a request

 

[qlai]

IB is not suitable for this. you need a connection which messages you when the book changes without you having to make a request

Why? It sounds like he simply wants to modify based on nbbo of the underlying. The question is how fast he needs to react?

 

[TommyR]

yeah but on IB he has to send a request for the bid offer, they check he is allowed by sending another message back which he them responds to and then the third time it sends him the market data. To then change the bid is similar. the most frequent updates you can recieve are 250ms so if the bid moves a tick he will take nearly 1 second to move his order. There are heavy resistrictions on the number of requests you can send so i think this would be a high traffic strategy which would would push you over the limit even if the leisurely pace does not put you at risk of snipers

 

[qlai]

yeah but on IB he has to send a request for the bid offer, they check he is allowed by sending another message back which he them responds to and then the third time it sends him the market data. To then change the bid is similar.

He should be able to subscribe to both equity and options streaming data. It says opinions are 100ms snapshots.

http://interactivebrokers.github.io/tws-api/top_data.html

 

[bone]

There is zero money in this for you at a retail level. Even at a pro level for that matter. You would be competing with CBOE Market Maker types. With very expensive ECN’s and software.

https://www.itiviti.com/orc

Hi everyone. I am looking for a tool that would allow me to continuosly update my bid offer on US equity options depending on the price of the underlying. It is a tool similar to the one used by market maker, but is should follow two simple rules:
Call options:
1) If the last underlying price is smaller than this, cancel the offer
2) If the last underlying price is bigger than this, place the offer (bid)

Put options:
The above 2) points reversed.

Ideally I would like to stick to my broker (IB), but I am willing to consider other options.
Thanks in advance.

Arturo.

 

[traider]

Does IB charge tons of fees for order cancellation and modifications?