The Visible Options Trade

The Visible V-8 Engine model. (rather newer than mine)

As a 9 yr old kid...

My Dad gave me a "Visible Engine" model to put together for learning.  It was awesome - not only could you assemble all the hundreds of pieces... it moved and "ran" (on an electric battery motor - not gasoline).  That was a special present... lots of learning came from that present.

I became a small engine repair teen... when he sent me to a summer school to learn in a proper shop.  In college I learned all the theory.  Very few of the labs used real equipment like a V-8, so I didn't learn much about the very basic engine that runs so much of our lives the ICE (internal combution engine - as it's known now that electric motors are comming of age).

Much later, a colleague and friend took me to his basement where he had a transmission taken apart and on the bench.  The same model as in my 289 4-speed Mustang.  One learns when you get your hands dirty.

Leaning to Trade Options

So today (2024) I'm learning to trade stock market options ( you have heard of derivatives - like crashed the markets back in 2008)... turns out ... when you get past the hype - they can be and are quite safe.  But, like a laser pointer - they come with a warning:  "Don't point laser in other eye!"

Most of the Options trading world is just beyond ticker-tape technology,  yes, they traded in there green-screens, for IBM PC 286s and even upgraded to Windows...

You have seen the twenty-two monitor setups of the very important traders... on TV, the nightly News ... yes, even Wall-St has computerized...  in fact, guess when they went to using the decimal system (instead of the 1/8 of a dollar increments...) - go ahead ... google it...  yeah... sometime in the early 1960s right?  Wrong not last century ... but THIS century!  In 2001 - the NYSE went decimal!  That should tell you something about a traditional system.


TradeStation - Options Station Pro.  Guess the tech-stack for this tool set.

1970s Cray super computer and a 2007 iPhone.  Same general compute power.

I'm a sucker for AI...

Being a computer nerd... I know a bit about them... and what they can do.  I also know what we as humans are not very good at... and what has driven the modern world... it is NOT Software.  But that is what is "eating-the-world" if you buy into the hype (don't buy)!  All the gains of the last 80 years are in hardware (none in software) - trust me.

I've not ... yet... done any real AI.  I started a Harvard CS in AI course... but it started at square one and didn't appear to be moving ahead at a rate that would take the student to ChatGPT before the next century.  So I went out on my own...  a learning path I'm quite familiar with.

Everyone is talking about AI - but it is really the poor cousin to AI - Machine Learning that the real progress is being made.  This is purpose-built tooling to solve a unique problem domain - that can be elucidated with tons and tons of examples (data - give me data).

So what's the *NEW* compute platform for Options Traders?

Have you used a website to trade options?  Have you used a proprietary Windows EXE to trade on someone else's hardware?  Well, it's all just 1970s client-server technology, powered by the internet, and some really fast chip sets.  But nothing that the Cray One supercomputer couldn't handle.

Very little of the software does any more that the IBM System/360 couldn't handle... oh yeah they've off loaded all the UI/UX into that PC and a few million lines of windows GUI code.

But it is still using the same paradigm of sending transaction orders to an aggregator (who uses some process to make money by sending large volumes of transactions to the market-maker - now another program running on a farm of AWS servers).

And no-one, much cares about the human that had a concept and idea about the price of rice, the rains, and snow pack, in the California market.  That options speculator (a technical term) has a brain load of thoughts they are keeping ordered and using a keyboard to enter trades.  Maybe there is another way... could speech (that human all-powerful technology) be useful here?  What might happen if the speculator could talk to a mobile device and place a complex order for options.  And then see their order visualized on the screen?

The OptionsAI - platform.  A tool for visualizing an option trade.  From start to finish.  With real-time charting of the price action and the profit diagram (and expect move uncertainty cone).  Making understanding the dynamics of your trade very clear.

You need to experience it to understand just how powerful a mental model of the trade can be for your education.