Bank of America Merrill Lynch (BAML) has added its Delta Adjusted algorithm to its suite of US equity options strategies.
Delta Adjusted automates traders' work flow by automatically adjusting an option order limit price based on the underlying stock price movement and the trader's defined parameters.
Using this order type, traders can execute on multiple parameters and leverage BAML's equity algorithms, Instinct and Ambush, providing a more holistic trading tool that works across asset classes. Users can access the Delta Adjusted algo via BAML's InstaQuote trading platform or through third-party vendors.
“This comprehensive algo efficiently distributes based on a complex model, giving the trader more time for analysis and strategy,” said Jonathan Werts, head of broker dealer execution services, BAML.
BAML previously introduced a pairs trading algo to its European algo suite, in April 2011.