Options Trading API is Coming to Alpaca

I was chudded yesterday so I waited a bit for that to expire before posting this.

Alpaca is an API that allows you to algorithmically trade stocks. I've been wanting options for a long time, as most of my trading is theta ganging options. There has never really been a good API available to the average person for trading options till now. So much potential degeneracy has been unleashed!

42
Jump in the discussion.

No email address required.

I don't know what Alpaca is, but I know options trading is goombling for goomblers who think they're too smart to be goomblers. Enjoy becoming poor.

Jump in the discussion.

No email address required.

I'm down 60 bucks YTD, which is basically nothing. I've been selling options against GME, unfortunately the market moved against me but due to Good Risk Management I haven't suffered

Jump in the discussion.

No email address required.

>bet against a stock that's down 25% ytd

>lose money

:ma!#rseykneel::marseyaw#ardretard: :mars#eykneel:

Jump in the discussion.

No email address required.

IMHO you should just buy and hold VTI forever, and then use the money to buy drugs so you don't get bored.

Jump in the discussion.

No email address required.

GME

:#marseygigaretard:

Jump in the discussion.

No email address required.

This b-word doesn't know what selling means lmao.

You know those wsb idiots who buy OTM GME options? I'm the one that's taking their money lol

Jump in the discussion.

No email address required.

ur down $ tho

Jump in the discussion.

No email address required.

I'm the one that's taking their money lol

Not the one. You're one trader in a sea of traders, most of them hedge funds/investment banks/prop trading firms, with 100x better market access, 100x better information, 100x brainpower.

Jump in the discussion.

No email address required.

GME is down 41% YTD.

Jump in the discussion.

No email address required.

Um I'm gonna need a status check on your Personal Risk Tolerance

Jump in the discussion.

No email address required.

!slotsmb 2000

!goomblers goomblermisia

Jump in the discussion.

No email address required.

Trans lives matter !slotsmb1000

Jump in the discussion.

No email address required.

i will call you whatever pronoun you want if you really can make money from this

Jump in the discussion.

No email address required.

make a bot that buys shares in MIC companies right before Mars is within 30 degrees of the lunar node

Jump in the discussion.

No email address required.

weren't you having a public mental breakdown the other day about your grandpa seeing your estrogen tits or something?

I don't think you should be gambling highly risky derivatives tbh.

Jump in the discussion.

No email address required.

I've been at this for a while lol, it's so fun. I got banned from Robinhood for being underage, and I had to open another one under my mom's name. I later switched to a custodial account, and I blew up this $3k account (my dad's money) on GME back in the day. That was fun lol

Jump in the discussion.

No email address required.

>so fun

:#marseygambling: https://i.rdrama.net/images/1700237091707628.webp

dont be like me. quit now

Jump in the discussion.

No email address required.

https://i.rdrama.net/images/17002436933078945.webp

Nobody likes a quitter

Jump in the discussion.

No email address required.

I can always just ask daddy for more, or I could move to Seattle and become a stripper

Jump in the discussion.

No email address required.

I think they probably have an over saturated market for trans strippers

Jump in the discussion.

No email address required.

:#marseyfanspat:

Jump in the discussion.

No email address required.

but yeah thanksgiving is gonna be fun lol

Jump in the discussion.

No email address required.

Nice, I can automate my losses now.

Jump in the discussion.

No email address required.

Ideally, what you would do is scan the market for the options w the highest EV and buy those. Options are a lot less liquid than stocks so there are a lot more opportunities to find mispriced options

Jump in the discussion.

No email address required.

Ideally, what you would do is scan the market for the options w the highest EV and buy those.

Wow brilliant idea! How weird is it that Optiver, Flow, Virtu, Citadel haven't tried this yet?

Someone should tell Goldman Sachs, DE Shaw or Rentec that they can make money by buying options with a high EV :marseyxd:

Jump in the discussion.

No email address required.

You jest, but I have personally seen it play out where an option is mispriced and there's a chance to swoop in and grab it. Deducing the "correct" price isn't trivial either; it involves some complicated math

Jump in the discussion.

No email address required.

Deducing the "correct" price isn't trivial either; it involves some complicated math

Of course. But you're not competing against the average redditor.

Do you have pricing models that are better than what e.g. Optiver are using? How do you measure the quality of your model?

I have personally seen it play out where an option is mispriced and there's a chance to swoop in and grab it.

Yeah sure, but that's not enough to build an algorithm.

Jump in the discussion.

No email address required.

Since draumanaut's funds are low, and thus their influence on the market, couldn't you just test your model by having it record what it would have done, then seeing how it did after a month or two before letting it play with real funds?

Is there an easy way to set something like this up? Sounds kinda fun!

Jump in the discussion.

No email address required.

easiest way to play around is probably the quantconnect platform.

Jump in the discussion.

No email address required.

Thanks!

Jump in the discussion.

No email address required.

>I was chudded yesterday so I waited a bit for that to expire before posting this.

Why? Trans lives DO matter and you're the one who should know the most

Jump in the discussion.

No email address required.

Because I don't want to make text posts that are in all uppercase. It's annoying more than anything else

Jump in the discussion.

No email address required.

black lives matter

Jump in the discussion.

No email address required.

If this doesn't mean that i can frick wall street in the mouth just by petting a chilean subspecies of llama then you've finally earned your block

Jump in the discussion.

No email address required.

Hit the block button, Chud. See what happens.

Jump in the discussion.

No email address required.

No, i want to keep being mad every time you post

Jump in the discussion.

No email address required.

Being a solo algo trader is like setting Tesla on autopilot using one of those rubber hands to keep it activated, plugging in a destination 10 hours away that goes through numerous metros, and then getting in the backseat to watch a movie.

Adding options to this is doing the same, but setting the cruise speed to 150 and filling the cabin with gasoline and fireworks

Jump in the discussion.

No email address required.

if you find a market inefficiency that's both big enough to overcome your trading costs (which are high compared to what the professionals pay), and small enough that the professionals aren't interested in it. (or perhaps if you find a market inefficiency that the professionals can't exploit for regulatory reasons, or don't want to exploit for accounting reasons.)

theta decay is not a market inefficiency.

Jump in the discussion.

No email address required.

Ah yes, the "pick up pennies in front of a steamroller" strat. Very stable and sure to bea the S&P 500 with minimal work on your end :#marseyclueless:

Jump in the discussion.

No email address required.

that's the opposite of what I said. With "picking up pennies in front of a steamroller"-strategies you have no chance against the pros.

Jump in the discussion.

No email address required.

Well, typically those strategies the pros aren't using are because the risk is so high. Look at the WSB classics like the infinite leverage short box spreads

Jump in the discussion.

No email address required.

First of all:

I'm not saying you can find something like that. I'm saying algotrading only makes sense if you have found something like that.

But this is the kind of situation I meant:

1. you found a way to bet $10k for a 2:3 chance to get back $4k (lose $6k) and a 1:3 chance to get back $25k (gain $15k), aka the expected return is $1000. So the expected return of 1000 consecutive bets is $1M. (if the bets are iid, the probability that in the course of those 1000 bets you're at any moment down more than -$200k is 1.1%, the probability that you're ever down more than -$300k is 0.2%. The probability that at the end, after the 1000 bets, you're down at all is only 0.04%, the probability that at the end you're up at least $300k is 99%)

2. it doesn't generalize to a large class of underlyings. you can only make those bets ~4 times a day.

3. it doesn't scale in volume: the order books for the necessary trades are almost empty -- if you want to bet more than $10k the corresponding trades get rapidly more expensive, when betting $20k the expected return is already negative.

4. it would take a couple rentec level employees at least a month to figure out how to find this type of bet and to implement it in their system.

That's the kind of inefficiency that's too small for the pros, but it's ideal if you have $800k in your brokerage account.

Jump in the discussion.

No email address required.

Jesse what the frick are you talking about??

Jump in the discussion.

No email address required.

fwound the incwl

Jump in the discussion.

No email address required.

So much potential degeneracy has been unleashed!

so much this.

Jump in the discussion.

No email address required.

Wow this is already available for normal stock and endpoints for options are to be introduced, like I can already use the api for normal trading??

Jump in the discussion.

No email address required.

Yes, their stock trading API has been a thing for a while. They have both paper and real money trading

Jump in the discussion.

No email address required.

very cool, good looks

Jump in the discussion.

No email address required.

god darn i might need to update my vote for favorite :marseytrain: on the website

thanks for contributing to my bonus bb

Jump in the discussion.

No email address required.

IBKR has had an api for 20 years

Jump in the discussion.

No email address required.

What are the commissions and fees for using alpaca to day trade

Jump in the discussion.

No email address required.

Look it up bumfuzzle this aint alpaca support

Jump in the discussion.

No email address required.

:#marseysadgun:

Jump in the discussion.

No email address required.

me after gme down 50%

Jump in the discussion.

No email address required.

>investing in meme stocks without also hiring sexy indian dudes from fiverr to spam groomercord/reddit and pump the stock

ngmi

Jump in the discussion.

No email address required.

Link copied to clipboard
Action successful!
Error, please refresh the page and try again.