LiveOption: Evaluating LLM Agents in Structured Option Trading with Nonlinear Payoffs
On the map: LLM agents and tool use → Financial trading and forecasting agents
Abstract (arXiv)
Large language models (LLMs) and multi-agent systems (MAS) have shown promise in financial decision-making, yet existing evaluations focus on equity trading and primarily assess directional prediction, overlooking the structural complexity of derivative markets. Option trading introduces fundamentally different challenges, including nonlinear payoffs and multi-leg strategy construction, requiring structured decisions rather than simple directional bets. We introduce LiveOption, an evaluation framework for LLM-based agents in option trading. LiveOption formulates the problem as structured sequential decision-making under realistic execution and capital constraints, and provides a reproducible environment with standardized interaction protocols. The framework includes three task suites covering portfolio overlays, event-driven earnings trading, and 0DTE intraday trading. We further propose a hierarchical metric suite that evaluates action validity, decision quality, risk characteristics, and outcome-level performance. Experiments show that current agents often fail to achieve competitive returns in most scenarios. LiveOption offers a principled testbed for evaluating structured decision-making beyond outcome-based metrics.
Key facts. No citing papers in the map yet (data through 14 Oct 2026). Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use. Builds on 21 of its 63 references that are in the map. First posted on arXiv 27 Sep 2026.
Builds on
21 of 63 references.
Closest ancestors · 3
Same direction, newest first
- 2025StockBench: Can LLM Agents Trade Stocks Profitably In Real-world Markets?2 Oct
- 2025FutureX: An Advanced Live Benchmark for LLM Agents in Future Prediction16 Aug
- 2024TradingAgents: Multi-Agents LLM Financial Trading Framework28 Dec
Other references · 18
- 2024The Llama 3 Herd of Modelscited by 14,715
- 2025Qwen3 Technical Reportcited by 8,820
- 2025gpt-oss-120b & gpt-oss-20b Model Cardcited by 1,386
- 2026DeepSeek-V4: Towards Highly Efficient Million-Token Context Intelligencecited by 1,040
- 2026GLM-5: from Vibe Coding to Agentic Engineeringcited by 587
- 2023FinanceBench: A New Benchmark for Financial Question Answeringcited by 270
- 2024Benchmarking Benchmark Leakage in Large Language Modelscited by 106
- 2026MiniMax Sparse Attentioncited by 44
- 2023Assessing Look-Ahead Bias in Stock Return Predictions Generated By GPT Sentiment Analysiscited by 31
- 2021Deep Hedging of Derivatives Using Reinforcement Learningcited by 30
- 2025Kronos: A Foundation Model for the Language of Financial Marketscited by 26
- 2025AI-Trader: Benchmarking Autonomous Agents in Real-Time Financial Marketscited by 25
6 more
- 2023CFBenchmark: Chinese Financial Assistant Benchmark for Large Language Modelcited by 18
- 2025Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Miningcited by 16
- 2025Cognitive Alpha Mining via LLM-Driven Code-Based Evolutioncited by 15
- 2026Evaluating LLMs in Finance Requires Explicit Bias Considerationcited by 11
- 2025QuantHarness: Price-Driven Multi-Agent LLMs for High-Frequency Tradingcited by 10
- 2024StockTime: A Time Series Specialized Large Language Model Architecture for Stock Price Predictioncited by 9
Built on by
Not cited yet.
Similar, not cited
Close in wording, no citation either way
- 2025When Agents Trade: Live Multi-Market Trading Benchmark for LLM Agents
- 2025StockSim: A Dual-Mode Order-Level Simulator for Evaluating Multi-Agent LLMs in Financial Markets
- 2025LiveTradeBench: Seeking Real-World Alpha with Large Language Models
- 2026Beyond Agent Architecture: Execution Assumptions and Reproducibility in LLM-Based Trading Systems
- 2025Agent Trading Arena: A Study on Numerical Understanding in LLM-Based Agents
- 2026Agentic Trading: When LLM Agents Meet Financial Markets
- 2025ContestTrade: A Multi-Agent Trading System Based on Internal Contest Mechanism
- 2026Toward Expert Investment Teams:A Multi-Agent LLM System with Fine-Grained Trading Tasks