LiveOption: Evaluating LLM Agents in Structured Option Trading with Nonlinear Payoffs
Read the original on arXiv AI →LiveOption is an evaluation framework designed to assess large language model (LLM) agents in option trading, a domain characterized by nonlinear payoffs and multi-leg strategy construction. The framework treats option trading as structured sequential decision-making under realistic execution and capital constraints, offering a reproducible environment with standardized interaction protocols. It includes three task suites—portfolio overlays, event-driven earnings trading, and 0DTE intraday trading—and introduces a hierarchical metric suite that evaluates action validity, decision quality, risk characteristics, and outcome-level performance, revealing that current agents often fail to achieve competitive returns.
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