February 2025 Summaries

Alpaca has introduced multi-leg, Level 3 options trading through its Trading API and web dashboard, expanding on its Level 1 and 2 U.S. options offering launched in May 2024. The feature supports advanced strategies including straddles, strangles, iron butterflies, iron condors, and credit, debit, and calendar spreads, allowing multiple contracts to be executed as a single trade for potential efficiency and risk-management benefits. Users can test, backtest, and implement these strategies with real-time market data, paper trading, and documentation; paper accounts automatically receive Level 3 access, while live traders must apply for approval. Alpaca notes that commission-free trading may still involve regulatory fees and emphasizes that options trading carries substantial risk, paper-trading results do not predict actual outcomes, and investing can result in losses.