Agency broker Convergex has launched a new algorithm to enable clients to hedge equities transactions and generate additional income.
The Buy-Write Algorithm ultilises Convergex’s VWAP equity algo and Pulse options algorithm to enable clients to use buy-write strategies electronically.
Firms trading equities using the algorithm can simultaneously sell call options for the same stock, hedging the equity trade and generating income from options premiums.
Oliver Sung, head of electronic execution at Convergex, said: “Our diverse client base is always looking for new ways to extract more yield from the marketplace. This buy-write algorithm provides a powerful new way for our clients to employ options in their investment strategy.”
Convergex hopes the algorithm will help simplify the process of using a buy-write strategy for those new to the space.