OptionsHouse, LLC

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OptionsHouse, LLC
OptionsHouse.jpg
Founded 2006
Headquarters Chicago
Key People Michael Curcio, CEO; Lance Braunstein, Chief Information Officer
Employees 50-200
Products online options broker
Twitter @optionshouse
Website www.optionshouse.com/
Releases Company News

OptionsHouse LLC is an online options and equities broker, founded by PEAK6 Investments, L.P. in 2006.[1] OptionsHouse was bought by private equity firm General Atlantic in late 2014, and simultaneously merged with tradeMonster while keeping the OptionsHouse name.

In July 2016, E*Trade announced it would purchase OptionsHouse for $725 million. [2]

OptionsHouse has consistently ranked among the best brokers for options traders by Barron's in their annual online broker rankings, and consistently gains recognition for it's mobile platform.[3] [4] [5]

Products and Services

The firm was launched with a simple one price fee structure, but in December 2009 that was changed to a tiered pricing structure based on the number of contracts traded.[6] This marked a new strategy among the discount options brokers, who also offered flat rate pricing to their customers.

OptionsHouse's suite of products includes:

  • Risk Viewer, a tool to provide insight into portfolio risk
  • Call Spread Investigator, a scanning tool that identifies equity option call spreads with high theoretical returns
  • Covered Call Investigator, a scanning tool that identifies equity option covered calls with high theoretical returns
  • Put Spread Investigator, a tool that scans equity options to find put spreads with high theoretical returns.
  • Stock Screener, the ability to identify potential investments based on personal ideas and sentiment.
  • Probability Calculator, a tool that will calculate a given symbol's probability of reaching targets on a future date
  • Trade Generator, a tool that identifies trades that match up to personal market sentiments.

OptionsHouse also provides streaming data and news, a profit and loss calculator as well as volatility charts.[7]

History

OptionsHouse was founded by PEAK6 in 2006 and used PEAK6's technology during its early years as it established itself as a discount retail brokerage for options.

OptionsHouse completed merging with tradeMONSTER in early 2015 to become a new stand-alone company retaining the OptionsHouse name. [8] In the merger, General Atlantic acquired OptionsHouse from PEAK6 and separately acquired a majority interest in tradeMONSTER from its shareholders. General Atlantic owned a majority stake in the new combined company.[9] During the merger, OptionsHouse migrated all of its customers to the tradeMonster platform since some of PEAK6's proprietary technology was integrated with OptionsHouse's original platform.

In May 2016, OptionsHouse launched an FCM with the hopes that it could improve the longevity of its traders and take market share from larger online brokerages such as TD Ameritrade.

On July 25, 2016, E*Trade announced its plans to buy OptionsHouse from General Atlantic for $725 million. This acquisition will give E*Trade 154,000 OptionsHouse accounts. [10] In addition to these added customers, the acquisition is expected to increase E*Trade's clout in the derivatives space.[11]

Key People

  • Michael Curcio, CEO
  • Lance Braunstein, CIO

References

  1. OptionsHouse, Inc., New Online Brokerage, Debuts. OptionsHouse.
  2. E-Trade agrees to buy OptionsHouse. Crain's Chicago Business.
  3. Blue Chips. Barron's.
  4. Trading Platform Review. Trading Platform Review.
  5. OptionsHouse Information. website.
  6. OptionsHouse adjusts broker fees for option trades. Reuters.
  7. OptionsHouse. website.
  8. PEAK6's OptionsHouse to Combine with tradeMONSTER. Benzinga.
  9. OptionsHouse and tradeMONSTER to Combine to Form Leading Online Brokerage Firm. General Atlantic.
  10. E-Trade agrees to buy OptionsHouse. Crain's Chicago Business.
  11. E*TRADE ANNOUNCES ACQUISITION OF OPTIONSHOUSE. ETrade.