ECHO Platform Use Case

Advanced Equity Option Trading and Premium Manager P&L Automation by ECHO

Objective

Our client required a sophisticated equity option trading and premium management application hosted on the ECHO Platform. The primary goal was to develop a powerful tool capable of efficiently organizing, tracking, and managing sold option premium data across various option strategies, including naked sold puts, covered calls, and buy/write dividend plays. Additionally, the application featured a premium scan function to identify underlying stocks with high option premium characteristics and in-app accounting capabilities for profit and loss (P/L) calculations related to sold option premium over specified time periods.

Solution

Leveraging the capabilities of the ECHO Platform, we created a versatile connectivity structure that could integrate with various brokers. For this project, we established seamless connectivity with the TD Ameritrade API, enabling access to account-level data. We developed a custom user interface (UI) using React.js and Next.js frameworks, incorporating custom Material-UI (MUI) and DevExtreme components to facilitate data display and user interactions.

Implementation

  • Premium Data Organization

    The application inventoried and organized sold option premium data, allowing users to efficiently track their equity option trading positions. This included managing data related to naked sold puts, covered calls, and buy/write dividend plays.

  • Premium Scan Feature

    The premium scan feature identified underlying stocks with high option premium characteristics, providing users with valuable insights for potential trading opportunities.

  • Profit and Loss Accounting

    The application offered robust accounting tools for calculating profit and loss totals associated with sold option premium over specified time periods. Users could gain a clear understanding of their trading performance and make informed decisions based on historical data.

  • Custom Connectivity to TD Ameritrade API

    Using the ECHO Platform's connectivity capabilities, we established a seamless connection to the TD Ameritrade API. This connection enabled real-time access to account-level data, ensuring that users had up-to-date information for their trading activities.

Results

Through utilizing the versatile backend ECHO provides, and connecting to the TD Ameritrade API we were able to provide our client with advanced connectivity options and real-time access to critical account-level data. The comprehensive premium data organization, premium scan function, and P/L accounting capabilities empowered our client in the solutions they needed. The custom UI enhanced the user experience, making it easy to manage equity option positions and optimize premium-related strategies.