E*TRADE is pulling out all the stops when it comes to empowering its options trading customers, announcing a handful of updates to its trading platform. On Twitter, in what E*TRADE Financial Corporation (ETFC) has come to call TechTuesdays, the New York-based online broker announced that it is adding more customization to its options tools.
With the enhanced tools, options traders can make customized options chains, create customized columns in which they can add or remove months, and trade spreads in a faster manner thanks to options strategy chains that help investors better visualize the spreads, E*TRADE said. The online brokerage has also added a lot of drag and drop functionality to its options tools, making it easier for investors to check out their trading strategies and tweak them if need be.
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This isn't the first time that E*TRADE has added tools for options investors. Late last month, it announced its so-called Spectral Analysis tool. With the new tool, options traders can visualize the maximum profit and loss for an options strategy, view recent stock performance, and gauge potential profits and losses under different market conditions using the spectral map. The tool can also determine the potential for a profit and help traders make sense of options data that can seem like a different language. The Spectral Analysis tool is available through the brokerage's OptionsHouse platform.
Moreover, In late November, E*TRADE launched its options income backtester tool, which lets traders compare the performance of income-focused options strategies with owning the underlying stocks outright. Traders can choose from nine pre-defined strategies or create their own. During the same month, E*TRADE also launched the ability to trade options on mobile devices and log into investment accounts with Apple Inc.'s (AAPL) Face ID.
The moves on the part of E*TRADE to empower options traders come as volatility has returned to the stock market after two years with little to none of it. While that has spooked some retail investors, it presents opportunities for active traders. In addition to new tools for options trading, the New York-based online brokerage recently followed in the footsteps of TD Ameritrade, rolling out the ability to trade select exchange-traded funds 24 hours a day. "In today's non-stop news cycle, market-moving events don't wait for the opening or closing bell – they can happen at any time," said Christopher Larkin, senior vice president of trading product at E*TRADE, in a press release at the time. "For investors and traders looking to execute strategies in the moment, they now have a 24-hour solution in E*TRADE."