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From Natural Language to Executable Option Strategies via Large Language Models

arXiv cs.AI / 3/18/2026

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Key Points

  • The paper analyzes how large language models struggle to translate natural-language trading intents into correct option strategies due to the complexity of option-chain data and constraints.
  • It introduces the Option Query Language (OQL), a domain-specific intermediate representation that abstracts option markets into high-level primitives and grammatical rules so LLMs function as semantic parsers rather than free-form programmers.
  • OQL queries are validated and executed deterministically by an engine to instantiate executable trading strategies.
  • The authors present a new dataset for this task and demonstrate that their neuro-symbolic pipeline significantly improves execution accuracy and logical consistency over direct baselines.

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.