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Bank of America Merrill Lynch Simplifies Trading Strategies for Options

In an effort to simplify its electronic options trading platform, BofA Merrill has consolidated its options algo offering into four best-of-breed strategies: Clean Sweep, Fast Sweep, Delta-Adjusted and Smart Spreads. The strategies have incorporated more flexibility while minimizing complexity and allow for full customization.

“Options traders are looking for sophisticated strategies without all the intricacies on the front-end,” said Jonathan Werts, head of Electronic Derivatives. “In response, we’ve revamped our algo offering by reducing parameter complexity and streamlining the process, making strategy selection more intuitive for traders.”

Clean Sweep and Fast Sweep are liquidity-seeking algos that leverage the best of both worlds: smart posting logic and aggressive liquidity capture. Delta-Adjusted is the firm’s adaptive algorithm that allows an order to dynamically update according to order level parameters and the changing market. And finally, Smart Spreads is the multi-legged strategy that intelligently moves spread orders among multiple exchange complex order books in an effort to maximize fill rates.

By simplifying its offering, BofA Merrill provides more flexibility to traders by merging the functionality of several algorithms into four core strategies. Traders will no longer have to choose one capability at the expense of another; rather they will be able to combine complimentary functions.

BofA Merrill is a leading provider of clearing and financing services for U.S.-listed options and a global provider of equity, options and futures trading, sales and research services to mutual funds, hedge funds, CTAs, broker-dealers, pensions, endowments and other institutions. The firm was voted No. 1 U.S. Equities Trading Broker in the Greenwich Associates 2013 Survey, and Trader Instinct™ was named Equity Electronic Platform of the Year in 2013 by Derivatives Week.

Note: Options involve risk and are not suitable for all investors. There is no guarantee that the option strategies promoted will accomplish the stated objectives. Options trading is considered speculative and may result in the loss of a portion of or all of your initial investment, and/or funds in excess of the principal invested. Prior to buying or selling an option, you should reference the Characteristics and Risks of Standardized Options, "Option Disclosure Document" (ODD). All clients must receive a copy of the ODD prior to conducting any option trades.