Options Trading

The Options Trading APIs provide comprehensive access to TradeZero's options trading platform, enabling you to trade both single-leg and sophisticated multi-leg options strategies. Execute everything from simple call and put purchases to complex multi-leg spreads, iron condors, and butterflies programmatically.

Overview

The Options Trading APIs enable you to:

Trade single-leg options (calls and puts) at various options approval levels
Execute multi-leg options strategies with a single order
Access options positions with real-time Greeks calculations
Retrieve options chain data with bid/ask pricing and analytics
Monitor options-specific account metrics and margin requirements
Manage risk with pre-defined strategy templates

Options Trading Levels

TradeZero's options trading is organized into approval levels, each granting access to progressively more sophisticated strategies:

Level 1: Buy-Write (Covered Calls)

Buy-Write (Covered Call) - Own stock and sell call options against it
Risk Level: Low to Moderate
Requires: Stock ownership or simultaneous stock purchase

Level 2: Long Positions

Single Options - Buy calls or puts
Married Put - Own stock with protective put
Long Straddle - Buy call and put at same strike
Long Strangle - Buy call and put at different strikes
Risk Level: Limited to premium paid
Requires: Level 2 options approval

Level 3: Spreads and Advanced Strategies

Vertical Spreads - Bull/Bear Call Spreads, Bull/Bear Put Spreads
Butterfly Spreads - Standard and Iron Butterfly
Condor Spreads - Standard and Iron Condor
Risk Level: Limited but can be complex
Requires: Level 3 options approval

Important: Your account's options trading level determines which strategies you can execute. Check your account details to verify your current options approval level before attempting to place orders.

Single-Leg Options Trading

Buy Call or Put Option

Execute simple single-leg options trades by buying call or put options. Available at Level 2 and above.

Use Cases

Directional Trades - Speculate on stock price movement with limited risk
Leverage - Control 100 shares with less capital than buying stock
Portfolio Hedging - Protect existing positions with puts
Income Generation - Covered call strategies (Level 1)
Volatility Trading - Profit from expected price movements

Request Example - Buy Call

CURL Example - Buy Call Option
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "AAPL250117C00150000",
  "orderQuantity": 10,
  "side": "Buy",
  "orderType": "Limit",
  "limitPrice": 5.50,
  "timeInForce": "Day",
  "securityType": "Option"
}'

Request Example - Buy Put

CURL Example - Buy Put Option
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "TSLA250117P00200000",
  "orderQuantity": 5,
  "side": "Buy",
  "orderType": "Limit",
  "limitPrice": 8.25,
  "timeInForce": "Day",
  "securityType": "Option"
}'

Options Symbol Format

Options symbols follow the OSI (Options Symbology Initiative) format:

Format: [Root Symbol][Expiration YYMMDD][C/P][Strike Price (8 digits)]
Example: AAPL250117C00150000
- Root: AAPL
- Expiration: January 17, 2025
- Type: C (Call) or P (Put)
- Strike: $150.00 (padded to 8 digits)

Request Parameters

Parameter	Type	Required	Description
`symbol`	string	Yes	OSI-formatted option symbol
`orderQuantity`	integer	Yes	Number of contracts (1 contract = 100 shares)
`side`	string	Yes	"Buy" or "Sell" (selling requires Level 3+ for naked options)
`orderType`	string	Yes	"Market", "Limit", "Stop", "StopLimit"
`limitPrice`	number	Conditional	Required for limit orders (price per contract)
`stopPrice`	number	Conditional	Required for stop orders
`timeInForce`	string	Yes	"Day", "GoodTillCancel", "ImmediateOrCancel", "FillOrKill"
`securityType`	string	Yes	"Option" for single-leg, "Mleg" for multi-leg

Multi-Leg Options Strategies

Multi-leg strategies execute multiple options positions simultaneously as a single order, ensuring all legs fill together and typically receiving better pricing than individual leg orders.

Note: All multi-leg strategies require the legs array to be populated in the JSON payload with the complete strategy definition. Set securityType to "Mleg" for all multi-leg orders.

Leg Structure

Each leg in a multi-leg order must include the following required fields:

Field	Type	Required	Description
`symbol`	string	Yes	The option or stock symbol for this leg
`ratio`	integer	Yes	Quantity ratio (1-2) indicating the quantity of this leg for a single unit of the multi-leg order
`side`	string	Yes	"Buy" or "Sell"
`openClose`	string	Yes	"Open" or "Close"

Important: Do not include assetType, strategyType, quantity, or other fields in the legs array - only the four required fields above are supported.

Level 1: Buy-Write (Covered Call)

Buy-Write Strategy

A buy-write (or covered call) involves simultaneously buying stock and selling a call option against it. This generates income from the option premium while capping upside potential.

Strategy Type: Multi-leg Options Level Required: Level 1 Risk: Moderate (limited to stock ownership)

When to Use

Generate income on stock holdings
Willing to sell stock at strike price
Neutral to slightly bullish outlook
Stock expected to trade sideways or move up moderately

Request Example

CURL Example - Buy-Write
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "AAPL",
  "orderType": "Market",
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 100,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "AAPL",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117C00180000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 100 shares of AAPL
Leg 2: Sell 1 call option (covers the 100 shares)
Max Profit: (Strike Price - Stock Purchase Price) + Premium Received
Max Loss: Stock Purchase Price - Premium Received
Breakeven: Stock Purchase Price - Premium Received

Level 2: Basic Options Strategies

Married Put

A married put involves owning stock and buying a put option for downside protection. This is essentially insurance on your stock position.

Strategy Type: Multi-leg Options Level Required: Level 2 Risk: Limited (protected by put option)

When to Use

Protect existing stock holdings from downside
Maintain upside potential while limiting losses
Hold stock through uncertain events (earnings, etc.)
Create a synthetic long call position

Request Example

CURL Example - Married Put
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "TSLA",
  "orderType": "Market",
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 100,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "TSLA",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "TSLA250117P00230000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 100 shares of TSLA
Leg 2: Buy 1 put option (protects the 100 shares)
Max Profit: Unlimited (as stock rises)
Max Loss: (Stock Price - Strike Price) + Premium Paid
Breakeven: Stock Purchase Price + Premium Paid

Long Straddle

A long straddle involves buying both a call and put at the same strike price and expiration. Profits from large moves in either direction.

Strategy Type: Multi-leg Options Level Required: Level 2 Risk: Limited to premiums paid

When to Use

Expect significant price movement but uncertain of direction
Before major announcements (earnings, FDA decisions, etc.)
High implied volatility expected
Volatility trading strategies

Request Example

CURL Example - Long Straddle
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "SPY250117C00450000",
  "orderType": "Limit",
  "limitPrice": 12.50,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "SPY250117C00450000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117P00450000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 call at $450 strike
Leg 2: Buy 1 put at $450 strike (same strike as call)
Max Profit: Unlimited on upside, substantial on downside
Max Loss: Total premiums paid for both options
Breakeven: Strike ± Total Premium Paid (two breakeven points)

Long Strangle

A long strangle is similar to a straddle but uses different strike prices (put strike below call strike). Lower cost than straddle but requires larger move to profit.

Strategy Type: Multi-leg Options Level Required: Level 2 Risk: Limited to premiums paid

When to Use

Expect significant price movement but want lower cost than straddle
Less certain about magnitude of move
Lower implied volatility than straddle
Wider breakeven range acceptable

Request Example

CURL Example - Long Strangle
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "AAPL250117C00185000",
  "orderType": "Limit",
  "limitPrice": 8.75,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "AAPL250117C00185000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117P00165000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 call at higher strike ($185)
Leg 2: Buy 1 put at lower strike ($165)
Max Profit: Unlimited on upside, substantial on downside
Max Loss: Total premiums paid for both options
Breakeven: Upper Strike + Premium, Lower Strike - Premium

Level 3: Advanced Spreads and Strategies

Vertical Spreads

Vertical spreads involve buying and selling options of the same type (both calls or both puts) with different strike prices but the same expiration date.

Strategy Type: Multi-leg Options Level Required: Level 3 Risk: Limited and defined

Bull Call Spread

Bullish strategy using calls. Buy lower strike call, sell higher strike call.

When to Use

Moderately bullish outlook
Want to reduce cost compared to buying call alone
Willing to cap upside potential
Lower volatility environments

Request Example

CURL Example - Bull Call Spread
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "AAPL250117C00170000",
  "orderType": "Limit",
  "limitPrice": 3.50,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "AAPL250117C00170000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117C00180000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 call at lower strike ($170)
Leg 2: Sell 1 call at higher strike ($180)
Max Profit: (Higher Strike - Lower Strike) - Net Premium Paid
Max Loss: Net premium paid
Breakeven: Lower Strike + Net Premium Paid

Bear Put Spread

Bearish strategy using puts. Buy higher strike put, sell lower strike put.

When to Use

Moderately bearish outlook
Want to reduce cost compared to buying put alone
Willing to cap downside profit potential
Lower volatility environments

Request Example

CURL Example - Bear Put Spread
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "TSLA250117P00250000",
  "orderType": "Limit",
  "limitPrice": 4.25,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "TSLA250117P00250000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "TSLA250117P00230000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 put at higher strike ($250)
Leg 2: Sell 1 put at lower strike ($230)
Max Profit: (Higher Strike - Lower Strike) - Net Premium Paid
Max Loss: Net premium paid
Breakeven: Higher Strike - Net Premium Paid

Butterfly Spread

A butterfly spread uses three strike prices to create a position with limited risk and limited profit potential. Profits most when stock stays near middle strike.

Strategy Type: Multi-leg Options Level Required: Level 3 Risk: Limited to net premium paid

When to Use

Expect little price movement (neutral outlook)
Low volatility expected
Want defined risk with positive expected value
Time decay working in your favor

Request Example

CURL Example - Long Call Butterfly
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "SPY250117C00440000",
  "orderType": "Limit",
  "limitPrice": 2.00,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "SPY250117C00440000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00450000",
      "ratio": 2,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00460000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 call at lower strike ($440)
Leg 2: Sell 2 calls at middle strike ($450)
Leg 3: Buy 1 call at higher strike ($460)
Max Profit: (Middle Strike - Lower Strike) - Net Premium Paid
Max Loss: Net premium paid
Breakeven: Two breakeven points symmetrically around middle strike

Iron Butterfly

An iron butterfly combines a bull put spread and a bear call spread, with all options sharing the same middle strike. Lower capital requirement than standard butterfly.

Strategy Type: Multi-leg Options Level Required: Level 3 Risk: Limited and defined

When to Use

Expect minimal price movement
Want to collect premium (credit spread)
Neutral market outlook
High implied volatility that may decrease

Request Example

CURL Example - Iron Butterfly
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "SPY250117P00440000",
  "orderType": "Limit",
  "limitPrice": 5.50,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "SPY250117P00440000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117P00450000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00450000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00460000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 put at lower strike ($440)
Leg 2: Sell 1 put at middle strike ($450)
Leg 3: Sell 1 call at middle strike ($450)
Leg 4: Buy 1 call at higher strike ($460)
Max Profit: Net credit received
Max Loss: (Wing Width - Net Credit)
Breakeven: Middle Strike ± Net Credit

Condor Spread

A condor spread is similar to a butterfly but uses four different strike prices instead of three, creating a wider profit zone.

Strategy Type: Multi-leg Options Level Required: Level 3 Risk: Limited to net premium paid

When to Use

Expect moderate price movement within a range
Want wider profit zone than butterfly
Lower probability of max profit but higher probability of some profit
Neutral outlook with defined boundaries

Request Example

CURL Example - Long Call Condor
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "AAPL250117C00165000",
  "orderType": "Limit",
  "limitPrice": 1.50,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "AAPL250117C00165000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117C00170000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117C00180000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "AAPL250117C00185000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 call at lowest strike ($165)
Leg 2: Sell 1 call at lower-middle strike ($170)
Leg 3: Sell 1 call at upper-middle strike ($180)
Leg 4: Buy 1 call at highest strike ($185)
Max Profit: (Difference between middle strikes) - Net Premium Paid
Max Loss: Net premium paid
Breakeven: Two breakeven points

Iron Condor

An iron condor combines a bull put spread and a bear call spread with different middle strikes, creating a credit spread with wider profit range.

Strategy Type: Multi-leg Options Level Required: Level 3 Risk: Limited and defined

When to Use

Expect price to stay within a range
Want to collect premium (credit strategy)
High implied volatility expected to decrease
Neutral outlook with defined risk

Request Example

CURL Example - Iron Condor
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/order' \
-X POST \
-H 'Accept: application/json' \
-H 'Content-Type: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}' \
-d '{
  "symbol": "SPY250117P00430000",
  "orderType": "Limit",
  "limitPrice": 3.75,
  "timeInForce": "Day",
  "side": "Buy",
  "orderQuantity": 1,
  "securityType": "Mleg",
  "legs": [
    {
      "symbol": "SPY250117P00430000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117P00440000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00460000",
      "ratio": 1,
      "side": "Sell",
      "openClose": "Open"
    },
    {
      "symbol": "SPY250117C00470000",
      "ratio": 1,
      "side": "Buy",
      "openClose": "Open"
    }
  ]
}'

Strategy Breakdown

Leg 1: Buy 1 put at lowest strike ($430)
Leg 2: Sell 1 put at lower-middle strike ($440)
Leg 3: Sell 1 call at upper-middle strike ($460)
Leg 4: Buy 1 call at highest strike ($470)
Max Profit: Net credit received
Max Loss: (Wing Width - Net Credit)
Breakeven: Lower Middle - Credit, Upper Middle + Credit

Options Positions

Retrieve Options Positions

`GET /v1/api/accounts/{accountId}/positions`

Retrieve all open options positions with real-time Greeks (Delta, Gamma, Theta, Vega), implied volatility, and P&L calculations. Options positions are returned alongside equity positions.

Use Cases

Greeks Monitoring - Track position Greeks for risk management
P&L Tracking - Monitor real-time profit/loss on options positions
Time Decay Analysis - Understand theta decay impact on positions
Portfolio Delta - Calculate total portfolio directional exposure
Expiration Management - Identify positions nearing expiration

Request Example

CURL Example
curl 'https://webapi.tradezero.com/v1/api/accounts/TZ12345678/positions' \
-H 'Accept: application/json' \
-H 'TZ-API-KEY-ID: {YOUR_CLIENT_ID}' \
-H 'TZ-API-SECRET-KEY: {YOUR_CLIENT_SECRET}'

Response Structure for Options

Field	Type	Description
`accountId`	string	The account ID
`symbol`	string	The security symbol for the position
`tradedSymbol`	string	The traded symbol in OCC format for options positions
`rootSymbol`	string	The underlying stock symbol for options positions
`securityType`	string	The type of security ("stock", "option")
`shares`	number	The total number of shares/contracts in the position
`side`	string	The side of the position ("Long", "Short")
`priceAvg`	number	The average execution price for the position
`priceOpen`	number	The opening price for the position
`priceClose`	number	The closing price for the position
`priceStrike`	number	The strike price for options contracts
`putCall`	string	Type of option ("Put" or "Call")
`dayOvernight`	string	Indicates whether the position is a day trade or overnight position
`createdDate`	string	The time when the position was created (ISO 8601 format)
`updatedDate`	string	The last time the position was updated (ISO 8601 format)

Response Example

[
  {
    "accountId": "TZ12345678",
    "symbol": "AAPL250117C00175000",
    "tradedSymbol": "AAPL250117C00175000",
    "rootSymbol": "AAPL",
    "securityType": "option",
    "shares": 10,
    "side": "Long",
    "priceAvg": 5.50,
    "priceOpen": 5.50,
    "priceClose": 7.25,
    "priceStrike": 175.00,
    "putCall": "Call",
    "dayOvernight": "Overnight",
    "createdDate": "2024-11-27T14:30:00Z",
    "updatedDate": "2024-12-11T16:00:00Z"
  }
]

Understanding Greeks

Delta (Δ)

Measures rate of change in option price per $1 move in underlying
Range: 0 to 1 for calls, -1 to 0 for puts
0.65 delta means option moves $0.65 for every $1 move in stock
Portfolio delta shows directional exposure

Gamma (Γ)

Measures rate of change of delta
Higher gamma means delta changes quickly with price moves
Highest for at-the-money options
Important for managing delta-hedged positions

Theta (Θ)

Measures time decay (value lost per day)
Always negative for long options
Accelerates as expiration approaches
Higher for at-the-money options

Vega (V)

Measures sensitivity to implied volatility changes
Higher vega means more sensitive to volatility
0.22 vega means option gains $0.22 for 1% increase in IV
Important for volatility trading strategies

Best Practices

Strategy Selection

Match Strategy to Outlook - Choose strategies that align with your market view
Consider Volatility - High IV (Implied Volatility) favors selling premium, low IV favors buying
Account for Time Decay - Understand how theta affects your position
Define Risk - Know maximum profit and loss before entering

Multi-Leg Order Execution

Use Limit Orders - Specify maximum debit or minimum credit for spread
All-or-None - Consider AON orders to ensure all legs fill together
Market Hours - Better liquidity during regular trading hours
Bid-Ask Spreads - Wider spreads on multi-leg orders, be patient with limit orders

Risk Management

Position Sizing - Don't risk more than 2-5% of account on single trade
Diversification - Don't concentrate all positions in one underlying
Exit Strategy - Have profit target and stop-loss defined before entry
Monitor Greeks - Track delta, theta, vega exposure regularly
Early Assignment Risk - Be aware of assignment risk on short options

Expiration Management

Close Before Expiration - Consider closing positions 7-14 days before expiration
Exercise vs. Close - Usually more profitable to close than exercise
Assignment Risk - Short options can be assigned any time (American style)
Rolling Positions - Consider rolling to future expiration to extend trade

Margin and Capital Requirements

Multi-Leg Margin Benefits - Spreads use less buying power than naked options
Understand Requirements - Each strategy has different margin requirements
Cash Secured Puts - Requires cash to buy stock at strike
Defined Risk - Most Level 2-3 strategies have defined, limited risk

Options Approval Verification

Check Options Level - Use account details endpoint to verify approval level
Upgrade If Needed - Contact TradeZero to request higher options levels
Strategy Restrictions - Only trade strategies within your approval level
Educational Requirements - Higher levels may require options trading education

Error Handling

Common error scenarios:

Insufficient Options Level - Upgrade account or use permitted strategies
Invalid Options Symbol - Verify OSI format and option exists
Leg Mismatch - Ensure all legs have same expiration for spreads
Insufficient Buying Power - Check margin requirements before order
Market Closed - Options trade during regular market hours only
Low Liquidity - Wide bid-ask spreads may prevent fills at desired prices

Performance Optimization

Batch Requests - Retrieve all positions in single call
Cache Greeks - Greeks don't change every second
Monitor Key Positions - Focus on largest positions and near-expiration
Pre-Calculate - Calculate strategy P&L before placing orders

Overview​

Options Trading Levels​

Level 1: Buy-Write (Covered Calls)​

Level 2: Long Positions​

Level 3: Spreads and Advanced Strategies​

Single-Leg Options Trading​

Buy Call or Put Option​

Use Cases​

Request Example - Buy Call​

Request Example - Buy Put​

Options Symbol Format​

Request Parameters​

Multi-Leg Options Strategies​

Leg Structure​

Level 1: Buy-Write (Covered Call)​

Buy-Write Strategy​

When to Use​

Request Example​

Strategy Breakdown​

Level 2: Basic Options Strategies​

Married Put​

When to Use​

Request Example​

Strategy Breakdown​

Long Straddle​

When to Use​

Request Example​

Strategy Breakdown​

Long Strangle​

When to Use​

Request Example​

Strategy Breakdown​

Level 3: Advanced Spreads and Strategies​

Vertical Spreads​

Bull Call Spread​

When to Use​

Request Example​

Strategy Breakdown​

Bear Put Spread​

When to Use​

Request Example​

Strategy Breakdown​

Butterfly Spread​

When to Use​

Request Example​

Strategy Breakdown​

Iron Butterfly​

When to Use​

Request Example​

Strategy Breakdown​

Condor Spread​

When to Use​

Request Example​

Strategy Breakdown​

Iron Condor​

When to Use​

Request Example​

Strategy Breakdown​

Options Positions​

Retrieve Options Positions​

GET /v1/api/accounts/{accountId}/positions​

Use Cases​

Request Example​

Response Structure for Options​

Response Example​

Understanding Greeks​

Best Practices​

Strategy Selection​

Multi-Leg Order Execution​

Risk Management​

Expiration Management​

Margin and Capital Requirements​

Options Approval Verification​

Error Handling​

Performance Optimization​

Overview

Options Trading Levels

Level 1: Buy-Write (Covered Calls)

Level 2: Long Positions

Level 3: Spreads and Advanced Strategies

Single-Leg Options Trading

Buy Call or Put Option

Use Cases

Request Example - Buy Call

Request Example - Buy Put

Options Symbol Format

Request Parameters

Multi-Leg Options Strategies

Leg Structure

Level 1: Buy-Write (Covered Call)

Buy-Write Strategy

When to Use

Request Example

Strategy Breakdown

Level 2: Basic Options Strategies

Married Put

When to Use

Request Example

Strategy Breakdown

Long Straddle

When to Use

Request Example

Strategy Breakdown

Long Strangle

When to Use

Request Example

Strategy Breakdown

Level 3: Advanced Spreads and Strategies

Vertical Spreads

Bull Call Spread

When to Use

Request Example

Strategy Breakdown

Bear Put Spread

When to Use

Request Example

Strategy Breakdown

Butterfly Spread

When to Use

Request Example

Strategy Breakdown

Iron Butterfly

When to Use

Request Example

Strategy Breakdown

Condor Spread

When to Use

Request Example

Strategy Breakdown

Iron Condor

When to Use

Request Example

Strategy Breakdown

Options Positions

Retrieve Options Positions

`GET /v1/api/accounts/{accountId}/positions`

Use Cases

Request Example

Response Structure for Options

Response Example

Understanding Greeks

Best Practices

Strategy Selection

Multi-Leg Order Execution

Risk Management

Expiration Management

Margin and Capital Requirements

Options Approval Verification

Error Handling

Performance Optimization