The above software is for market makers. Anyone know of a retail version of the same thing, or for one sided market making?
This would be almost impossible for a number of reasons.
First, not all the exchanges allow automated submission of option orders. I know that, at least, the AMEX doesn't allow it. Second if it is allowed, option exchanges have rules against a manner of "repeated" submission of option orders for retail customers. Even if you did go in on just one side of the market, say the offer, you would be repeatedly changing the offer to keep up with the market. And you would have to go in on one side because of the rules against going in on the bid and the ask simultaneously. The ISE made a statement to the effect that they are considering legal action against types of trading that might resemble market-making. I just tried to google this and submit the link. Didn't find it after a few minutes of searching, but it's there.
Also, retail traders have margin requirements for simply bidding and offering. Try to offer a 10 lot of GOOG calls a dollar above the market, and you may get a warning that your equity is insufficient to do such a trade.