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From Natural Language to Executable Option Strategies via Large Language Models

Author

Listed:
  • Haochen Luo
  • Zhengzhao Lai
  • Junjie Xu
  • Yifan Li
  • Tang Pok Hin
  • Yuan Zhang
  • Chen Liu

Abstract

Large Language Models (LLMs) excel at general code generation, yet translating natural-language trading intents into correct option strategies remains challenging. Real-world option design requires reasoning over massive, multi-dimensional option chain data with strict constraints, which often overwhelms direct generation methods. We introduce the Option Query Language (OQL), a domain-specific intermediate representation that abstracts option markets into high-level primitives under grammatical rules, enabling LLMs to function as reliable semantic parsers rather than free-form programmers. OQL queries are then validated and executed deterministically by an engine to instantiate executable strategies. We also present a new dataset for this task and demonstrate that our neuro-symbolic pipeline significantly improves execution accuracy and logical consistency over direct baselines.

Suggested Citation

  • Haochen Luo & Zhengzhao Lai & Junjie Xu & Yifan Li & Tang Pok Hin & Yuan Zhang & Chen Liu, 2026. "From Natural Language to Executable Option Strategies via Large Language Models," Papers 2603.16434, arXiv.org.
    • Handle: RePEc:arx:papers:2603.16434
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    File URL: http://arxiv.org/pdf/2603.16434
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    References listed on IDEAS

    as
    1. Haochen Luo & Yuan Zhang & Chen Liu, 2025. "EFS: Evolutionary Factor Searching for Sparse Portfolio Optimization Using Large Language Models," Papers 2507.17211, arXiv.org.
    2. Xiao-Yang Liu & Guoxuan Wang & Hongyang Yang & Daochen Zha, 2023. "FinGPT: Democratizing Internet-scale Data for Financial Large Language Models," Papers 2307.10485, arXiv.org, revised Nov 2023.
    3. Feliks Ba'nka & Jaros{l}aw A. Chudziak, 2025. "DeltaHedge: A Multi-Agent Framework for Portfolio Options Optimization," Papers 2509.12753, arXiv.org.
    4. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
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