Capital Allocation, LLC: Breaking Down the Intricacies of Options Trading

Brian Vogelman, CEO
Options are a versatile product that can be a very efficient way to help protect and diversify a portfolio, or create complex trades that can capitalize on almost any type of market. There are many factors that go into how options are priced and how they act in various markets. Yet, despite their inherent complexities, options have the potential to deliver higher percentage returns than other financial products.

That being the case, how do traders acquire these essential tools to become successful in a highly volatile business environment?

Traders can gain an edge through data driven insights by leveraging the right tools. Capital Allocation, LLC’s flagship product, OptionVue, has assisted professional traders with the scanning and analysis of exchange traded options since 1982. “OptionVue’s success stems from its ability to deliver a detailed analysis of options strategies.” according to Vogelman.

In today’s rapidly changing financial markets, OptionVue allows traders to more effectively analyze and manage risk before executing a trade. It does this by providing analytics, real-time quotes, historical data, custom trade modeling, charting, tracking, and more.

The features that attract most people to the platform are the detailed graphical analysis and the ability to choose from a variety of option pricing models. Traders have the ability to analyze complex options strategies historically, in real time and finally with future predictions, by using the standard software settings or their own estimates, to observe possible outcomes and assess their performance.

We offer the ability to customize many of the factors that traders consider when deciding on an option strategy. In some cases, our historical data available for testing goes back to 2001. In addition, the platform features a scanning function that allows traders to perform in depth scanning for trade ideas. This capability allows the trader to use custom filters to narrow down possible options and analyze the strategies that produce the greatest advantage.

OptionVue has been a popular tool in the exchange traded options market for decades, and was recently acquired by Capital Allocation, LLC (its new parent company) in 2018. The constantly changing markets and the addition of new financial instruments, we now experience every year, means that our infrastructure must be flexible along with the ability to expand.
Shortly after Capital Allocation completed its purchase of OptionVue, a new team was assembled and embarked on the ambitious plan to completely redesign our underlying systems to address this reality. We recently completed this plan, including a brand-new website, and are now well positioned to easily adapt to our growing needs.

While providing such advanced capabilities to experienced traders, Capital Allocation, LLC also serves the needs of a new generation of traders. For instance, in the last few years, options trading has gained more interest with the advent of broker-dealers such as Robinhood and Webull, who were created to compete against the more established Fidelity and Charles Schwab. As the war on commissions intensified, and the ability to buy fractional shares became more popular, individual investors with no prior experience in options trading rushed in to try their luck in the capital market. Vogelman explains, “what has really driven our business is the frequency and volume of options that are traded today.” Option expirations that used to occur only once a month, in some cases, now occur multiple times a week, which has led to some options having daily contract volume that can match or exceed that of some stocks. Options exchanges are seeing record volumes and continue to add more contracts and expirations every month. Although originally designed for the more advanced options trader, over the years OptionVue has expanded its customer base to now include the institutional trader and trading firms as well.

In addition to its flagship trading and analysis platform, Capital Allocation, provides educational products and alert services. Over the course of the last few years, the company has built many add-ons products that complement its trading and analysis software. The company’s primary focus is the software and services side, therefore the company does not execute trades, nor does it provide any advice on options trading.

Capital Allocation, LLC now employs a team of industry professionals with extensive experience in trading and finance, who also possess a keen understanding of the challenges associated with options trading. We foster a collaborative environment which enables us to work effectively to address customer needs incorporating them into present and future technology enhancements. Vogelman concluded with, “We have built a solid foundation, which allows us to be more responsive to internal and external feedback, making for an exciting future.”

Company
Capital Allocation, LLC

Headquarters
Cary, IL

Management
Brian Vogelman, CEO

Description
Capital Allocation provides a range of financial products aimed at taking option trading to a whole new level, including alert services and education, however, the company’s flagship offering is its option analysis software. The company has a variety of tools, designed to work with OptionVue, that allow a trader to scan for option strategies, choose from pre-screened earnings ideas, or manage their risk by analyzing exchange traded option strategies. The strategies can be analyzed on an historical basis, in the current market or by estimating and testing theories they have about future market moves. Traders are also able to choose from a variety of option pricing models in addition to customizing many of the factors within each model. Primarily, the platform provides graphical analysis of options to the professional as well as the institutional trader

Capital Allocation, LLC