Can anyone recommend a software package that will automatically send orders in the underlying stock when my options position delta reaches a pre-determined level?
Our firm has some automation, vol trading app. and an automatic delta hedging module. I'm not sure if they are interested in offering it to anyone outside the firm though. Who do you clear your trading through? You're probably not still with Duke & Duke, eh Billy Ray?
You are correct VolPimp. Ever since that whole affair with Beaks and the crop report, Winthorp and I have been trading stocks retail at one of the major daytrading firms. You can PM me if you would like to know which one. It's time for me to make a change to a delta neutral trading style, which means I'll probably be kissing my current broker goodbye. I have a pretty strong background in options, but not computer programming. If your firm is willing to license out the programs you described, please let me know.
This should be a very easy to program ; I am sure that many ET developers can do it very fast . The most complex part (imo) is a routine that checking available cash before every new transaction and what to do in case you are out of margins. All orders must be limits , then you don't have a bad tick disaster. You should also have a button "stop auto adjustments" when you want to go back to manual.
There are numerous software packages that can automatically hedge off your delta exposure. Do a google search for market maker platforms or software or something similar. You will see most of those come with auto delta hedge function. But I don't know of a retail product that does it.
How about any retail platforms that allow you to automatically "envelope" the market (aka work bids and offers above and below the prevailing mkt price)?