Tool for options trading: ORATS

Introduction: What is ORATS?

ORATS, short for Options Research and Technology Services, is a comprehensive, data-driven analytics platform designed for options traders who seek an institutional-grade toolkit. This article provides a detailed and neutral overview of the ORATS platform, dissecting its core features, pricing structure, and ideal user profile to help retail traders determine if it aligns with their strategic needs.

Founded in 2001 by Matt Amberson, a former market maker on the Chicago Board Options Exchange (CBOE), ORATS grounds its tools in professional trading experience. The platform’s philosophy is built on the belief that a market edge, or “alpha,” is a direct consequence of leveraging high-quality data. The following sections will explore the components of this data-centric ecosystem to provide a clear picture of what ORATS offers and who can benefit most from its capabilities.

Core Features: An All-in-One Options Analytics Ecosystem

ORATS is not a single tool but rather an integrated suite of services for research, backtesting, and trade execution. Its strategic importance lies in its ability to provide institutional-quality data and sophisticated analytics to a broader audience of retail traders. The platform is designed to cover the entire trading workflow, from discovering opportunities and validating strategies to managing positions.

1.1 Data and Analytics

The foundation of the entire ORATS ecosystem is its high-quality, reliable options data. The platform has built its analytical tools around a core of deep historical information and proprietary calculations designed to provide traders with a more accurate view of the market.

• Historical Data: ORATS provides extensive historical data sets essential for backtesting and research. This includes near end-of-day quotes dating back to 2007 and 1-minute intraday snapshots available from August 2020.

• Proprietary Indicators: The platform features an ecosystem built around hundreds of proprietary indicators. A key component is its Smoothed Market Values (SMV) system, which was designed to produce superior greeks, implied volatilities, and theoretical values compared to standard models.

• Data API: For traders who wish to build their own tools or integrate ORATS data into existing systems, the platform offers a powerful Data API. It provides access to historical market data for an unlimited number of symbols, with a generous limit of 20,000 API calls per month on select plans.

1.2 The “Wheel” Backtester

A core and standout feature of the ORATS platform is its powerful backtesting engine, known as “Wheel.” This tool allows users to simulate options strategies with a high degree of precision using daily data back to 2007. While reviews praise the “Wheel” backtester as one of the most user-friendly tools of its kind, prospective users should note that mastering its full suite of hundreds of customizable triggers will still require a significant time investment, a reality echoed by user comments noting a platform-wide “learning curve.”

• Customization: Strategies can be fine-tuned with hundreds of available triggers and criteria, such as delta, days to expiration (DTE), and bid-ask spread percentage.

• Accessibility: “Wheel” is available directly through the ORATS platform. It is also integrated into Interactive Brokers’ (IBKR) Trader Workstation (TWS) Mosaic platform through the “Discover” tool, making it accessible to IBKR clients.

• Scale: The integration with Interactive Brokers provides users with access to a massive database of over 180 million pre-run backtests for more than 100 symbols, allowing for rapid comparison and analysis of historical performance.

1.3 Scanning and Trade Ideas

ORATS provides a robust suite of tools for discovering and validating trade opportunities in real-time. These features are designed to help traders sift through thousands of potential trades to find those that meet specific, data-driven criteria.

• Option Scanner: This tool can scan and rank thousands of trades from a universe of over 5,000 symbols. Users can customize scans by strategy type (bullish, bearish, or neutral), DTE, strikes, and other criteria to quickly identify relevant opportunities.

• Stock Scanner: In addition to options, the platform includes a stock scanner with thousands of potential criteria. Filters include fundamentals (e.g., EPS, sales), technicals (e.g., price, volume), and options-specific metrics like volatility and skew.

• Trade Ideas Hub: This central dashboard aggregates potential opportunities through a tiered system for idea generation. It moves from fully automated discovery (a backtest finder matching current market conditions to over 300 million historical tests), to expert-curated ideas (strategies from the ORATS team), to fully personalized results (user-saved custom strategies and custom option scans), catering to different levels of user engagement.

• Market Intelligence Tools: The platform also includes several other discovery tools, such as scanners for “Unusual Volume” and “Largest Trades,” as well as analysis of upcoming earnings and dividend events to help traders identify potential catalysts.

1.4 Trading and Broker Integration

ORATS is designed as a broker-neutral platform, allowing traders to connect their existing brokerage accounts to integrate research with execution. This creates a seamless workflow, enabling users to move directly from identifying an opportunity in the scanner or backtester to placing a trade without switching platforms.

ORATS currently supports connections to the following brokers:

• Tradier

• TradeStation

• Interactive Brokers

This tight integration of research and execution establishes ORATS as a complete trading ecosystem, which naturally leads to the question of its cost and overall value proposition.

ORATS Pricing, Plans, and Promotions

ORATS offers a tiered pricing structure that allows traders to select the specific tools and data access they require. Understanding these costs, along with available partner discounts, is essential for evaluating the platform’s overall value proposition relative to a trader’s budget and needs.

2.1 Standard Pricing Tiers

The standard monthly pricing is divided between individual and professional traders, with separate tiers for the main trading tools and various levels of API access.

2.2 Available Discounts and Promotions

ORATS provides significant discounts through partnerships with other financial technology platforms, which can make its tools substantially more affordable for individual traders.

• QuantPedia Offer: Through this partnership, traders can access key ORATS services at a reduced rate using a 33% to 66% promo code. The “All-in-One Trading Tools” and the “Option Data API” are both available for $49/month each, a discount from the standard $99 price.

• Spintwig Special Pricing: Another partnership offers a 50% discount on both the Trading Tools and the Delayed Data API, bringing the price down to $49/month. This offer also includes discounted pricing for historical data: a recurring subscription for data from today onward is available for $399/year (a 66% discount), while a one-time purchase of data from 2007 to the present is available for $399 (a 33% discount).

These partnerships are a key part of the ORATS value proposition for individuals, effectively cutting the monthly subscription cost in half and making the platform price-competitive with less feature-rich alternatives. With a clear understanding of the platform’s accessible price points through these discounts, the crucial next step is to determine the specific type of trader who stands to gain the most from this investment.

Analysis: Is ORATS the Right Tool For You?

Choosing the right trading platform is a critical decision that depends heavily on an individual’s trading style, experience level, and analytical priorities. This section evaluates the strengths and weaknesses of ORATS to help you assess its suitability for your specific needs.

3.1 Profile of an Ideal ORATS User

ORATS is best suited for serious, data-driven options traders who prioritize quantitative analysis and historical backtesting to develop and validate their strategies. It is built for, as one review notes, “experienced traders who want to turn raw options data into smarter, more profitable trades.” This is precisely the type of user who can leverage the platform’s proprietary indicators and Smoothed Market Values (SMV) system to gain a more accurate view of the market. While the platform has a clean interface, its advanced features require a commitment to learning. A user comment on Reddit notes that “there is a learning curve,” reinforcing that the platform is not designed for absolute beginners but rather for those who are ready to engage deeply with data to find a trading edge.

3.2 Summary of Pros and Cons

Based on publicly available reviews and user feedback, the platform’s key advantages and disadvantages can be summarized as follows:

Pros

Cons

Comprehensive all-in-one toolset for screening, analysis, and backtesting.

Standard pricing can be high compared to some alternatives without partner discounts.

Access to high-quality, reliable, and deep historical options data.

A learning curve is required to master the advanced features and get full value.

A powerful yet user-friendly backtesting engine (“Wheel”).

A limited number of direct broker integrations are currently available.

Extensive educational resources, including a blog, video library, and webinars.

The platform’s primary drawbacks-cost and complexity-can be partially mitigated by the partner discounts and the educational resources designed to help users master the toolset.

Educational Support and Community Resources

Mastering an advanced trading platform requires robust educational support. ORATS provides a wealth of resources designed to help traders of all levels understand its tools and the broader concepts of options theory and volatility analysis.

• ORATS University: This is a structured online learning path that covers topics ranging from foundational options theory and volatility research to advanced backtesting methodology and practical implementation.

• Videos and Webinars: The platform maintains an extensive library of video content, including product tutorials, deep dives on specific indicators, and live educational webinars frequently hosted by founder Matt Amberson.

• Blog and Written Content: The ORATS blog offers detailed articles and market insights, providing another avenue for users to deepen their understanding of the platform’s capabilities and market dynamics.

• Direct Support: For specific questions, users can contact the ORATS support team directly via email at support@orats.com or by phone at (312) 986-1060.

Conclusion

ORATS stands out as a powerful, institutional-grade options analysis platform geared towards experienced retail traders who value data-driven decision-making. Its comprehensive suite of tools offers a complete workflow, from scanning and idea generation to rigorous backtesting and trade execution.

The platform’s core strengths lie in its deep and reliable historical data, a robust backtesting engine, and a comprehensive suite of scanning tools that empower traders to find a verifiable edge. While the platform’s institutional-grade capabilities come with a corresponding price tag and learning curve, the significant partner discounts and comprehensive ORATS University resources directly address these hurdles, making its advanced features accessible to the dedicated retail trader. For traders who are serious about leveraging quantitative analysis and historical testing to refine their strategies, ORATS presents a compelling and comprehensive solution.

The opinions and ideas presented are for informational and educational purposes only and should not be construed as trading or investment advice. Option trading involves risk and is not suitable for all investors.