Optimal Aims to Disrupt US Retail Options Trading

A latest market maker, Optimal, is challenging established players in the US retail options trading space. Founded by Brian Donnelly, who also founded Volant Trading in 2006, Optimal is assembling a team to compete with industry giants like Citadel, IMC/Dash, and Jane Street for order flow from retail brokers such as Robinhood and WeBull. Risk.net reported on this development on February 18, 2026.

The Challenge of Retail Options Order Flow

For years, Volant Trading struggled to gain significant traction as a wholesaler to WeBull, highlighting the difficulties in entering this competitive market. Retail brokers rely on wholesalers to handle a wide range of options contracts, including single stocks, indexes, and zero-day to expiration (0DTE) options. Risk.net

Growth in Retail Options Trading

The rise of retail options trading has been significant in recent years. Investors are increasingly drawn to options, particularly anticipating volatility spikes, such as those occurring around earnings announcements. MIT IDE research indicates a concentrated pattern of retail options purchases before these announcements, especially when higher abnormal volatility is expected.

Retail Investor Profitability

Despite the growth in participation, questions remain about the profitability of retail options trading. Some studies suggest that, on average, retail investors lose money trading options. Cboe research highlights this concern, noting that proxies for retail options trading often indicate losses. However, the methodologies used to assess retail profitability are continually being refined.

Regulatory Considerations

As the retail options market evolves, regulators are examining the existing framework. The Committee on Capital Markets Regulation (CCMR) is conducting research to ensure discussions about potential reforms are based on a comprehensive understanding of the current market landscape. CCMR staff report emphasizes the need for accurate assessment of the US options market.

Key Takeaways

• Optimal is a new market maker aiming to compete with established firms in the retail options space.
• Retail options trading has grown significantly, driven by anticipation of volatility.
• The profitability of retail options trading remains a subject of debate and ongoing research.
• Regulatory bodies are actively monitoring the market and considering potential reforms.