Paper: arXiv 2603.16434
Authors: 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.
Complexity vs Empirical Score
- Math Complexity: 2.5/10
- Empirical Rigor: 6.0/10 (capped from 6.5: transaction costs not modelled; see penalty flags)
- Quadrant: Street Traders — practical and empirical, lighter on theory
Why this score: The paper introduces a highly novel neuro-symbolic framework (OQL) bridging natural language and option strategy execution, offering strong practical utility. While heavy mathematical formalisms are minimal, the empirical evaluation using a specialized dataset and deterministic validation engine demonstrates solid rigor.
Research Flowchart
flowchart TD
A[Research Goal: Accurately Translate Natural-Language Options Strategy to Executable Code] --> B[Inputs: NL Trading Intent & Multi-Dimensional Option Chain Data]
B --> C[LLM Neuro-Symbolic Parser: Generates OQL Intermediate Representation]
C --> D[Deterministic Execution Engine: Validates OQL Rules & Queries Market Data]
D --> E[Outcome: High Logical Consistency & Executable Option Strategy]
D --> F[Outcome: Benchmark Dataset & Superior Accuracy over Direct Code Baselines]
Cited References (56)
- Fine-Tuning Large Language Models for Stock Return Prediction Using Newsflow — → 2407.18103
- DeepSeek-V3 Technical Report (2025) — link
- Chain-of-thought prompting elicits reasoning in large language models (2022)
- EvoAlpha: Evolutionary Alpha Factor Discovery with Large Language Models (2026) — link
- Codemirage: Hallucinations in code generated by large language models (2024) — link
- Qwen3 Technical Report (2025) — link
- Options, futures, and other derivatives (2016)
- The Llama 3 Herd of Models (2024) — link
and 48 more
- Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilities (2025) — link
- GPT-4 Technical Report (2024) — link
- Finqa: A dataset of numerical reasoning over financial data (2021)
- Can large language models be query optimizer for relational databases? (2025)
- Cfinbench: A comprehensive chinese financial benchmark for large language models (2025)
- Finben: A holistic financial benchmark for large language models (2024)
- Pixiu: A comprehensive benchmark, instruction dataset and large language model for finance (2023)
- Learning to generate explainable stock predictions using self-reflective large language models — → 2402.03659
- AlphaBench: Benchmarking Large Language Models in Formulaic Alpha Factor Mining (2025) — link
- Investorbench: A benchmark for financial decision-making tasks with llm-based agent (2025)
- XF in B ench: Benchmarking LLM s in Complex Financial Problem Solving and Reasoning (2025) — link
- Can Large Language Models Mine Interpretable Financial Factors More Effectively? A Neural-Symbolic Factor Mining Agent Model (2024) — link
- Fingpt: Democratizing internet-scale data for financial large language models (2023) — link
- Bloomberggpt: A large language model for finance (2023) — link
- FinCon: A Synthesized LLM Multi-Agent System with Conceptual Verbal Reinforcement for Enhanced Financial Decision Making (2024) — link
- LLMF actor: Extracting Profitable Factors through Prompts for Explainable Stock Movement Prediction (2024) — link
- Finbert: A pre-trained financial language representation model for financial text mining (2021)
- Stock price prediction using llm-based sentiment analysis (2024)
- Deep Learning for Options Trading: An End-To-End Approach (2024)
- Finmem: A performance-enhanced llm trading agent with layered memory and character design (2025)
- TwinMarket: A Scalable Behavioral and Social Simulation for Financial Markets (2025) — link
- Low-Latency Machine Learning for Options Pricing: High-Speed Models and Trading Performance (2025)
- Options: trading strategy and risk management (2011)
- Deltahedge: A multi-agent framework for portfolio options optimization — → 2509.12753
- Machine learning for quantitative finance: fast derivative pricing, hedging and fitting (2018)
- Option pricing using machine learning (2021)
- Time Travel in LLM s: Tracing Data Contamination in Large Language Models (2024) — link
- Kelly-based options trading strategies on settlement date via supervised learning algorithms (2022)
- Machine learning in finance: the case of deep learning for option pricing (2017)
- Time Travel is Cheating: Going Live with DeepFund for Real-Time Fund Investment Benchmarking (2025) — link
- EFS: Evolutionary Factor Searching for Sparse Portfolio Optimization Using Large Language Models — → 2507.17211
- Navigating the Alpha Jungle: An LLM-Powered MCTS Framework for Formulaic Factor Mining (2025) — link
- Alpha-gpt: Human-ai interactive alpha mining for quantitative investment (2025)
- Alphaagent: Llm-driven alpha mining with regularized exploration to counteract alpha decay (2025)
- The pricing of options and corporate liabilities (1973)
- ST a R - SQL : Self-Taught Reasoner for Text-to- SQL (2025) — link
- Adaptive and Robust Translation from Natural Language to Multi-model Query Languages (2025) — link
- F inance R easoning: Benchmarking Financial Numerical Reasoning More Credible, Comprehensive and Challenging (2025) — link
- Next-generation database interfaces: A survey of llm-based text-to-sql (2025)
- DCG - SQL : Enhancing In-Context Learning for Text-to- SQL with Deep Contextual Schema Link Graph (2025) — link
- Decomposition for enhancing attention: Improving llm-based text-to-sql through workflow paradigm (2024)
- Benchmarking the text-to-sql capability of large language models: A comprehensive evaluation (2024) — link
- Ehrsql: A practical text-to-sql benchmark for electronic health records (2022)
- Text-to-sql empowered by large language models: A benchmark evaluation (2023) — link
- When is Tree Search Useful for LLM Planning? It Depends on the Discriminator (2024) — link
- Finbert: Financial sentiment analysis with pre-trained language models (2019) — link
- A Multi-Level Sentiment Analysis Framework for Financial Texts (2025) — link
- TradingAgents: Multi-Agents LLM Financial Trading Framework (2025) — link
4 of 56 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.