Navigating the complex marketplace of historical options data providers is critical. This guide synthesizes key findings from our due diligence report to help you make the right strategic choice.
All U.S. options data originates from the Options Price Reporting Authority (OPRA). Processing this firehose of information is a massive technical challenge, creating the need for specialized data vendors. The sheer scale is staggering.
Source: OPRA, 2024 system upgrade report. This technical complexity is the central reason for the tiered market of data providers and explains the significant disparities in their pricing and quality.
The options data market is segmented into distinct tiers, each catering to different user needs, budgets, and quality requirements.
The "gold standard." Unparalleled data quality and deep history for top-tier research and large-scale quant operations.
"Battle-tested" data. Granular, high-quality data for quant firms and sophisticated algorithmic traders.
Value-added analytics or authoritative data straight from the source. For specific needs like volatility analysis.
Accessibility and affordability. Modern APIs and low-cost plans, often with trade-offs in historical quality.
The length of available historical data is a critical factor for robust backtesting. Institutional providers offer the deepest look back, with some records extending over two decades.
Providers make explicit trade-offs between cost and quality. This chart maps vendors based on their pricing tier and an assessed quality score derived from the report's analysis of data fidelity, granularity, and features.
OptionMetrics
The academic "gold standard."
AlgoSeek / SpiderRock
For granular backtesting.
ORATS
For specialized volatility analytics.
Polygon.io
Modern, developer-friendly API.
EODHD
Most affordable. Caution: data quality concerns.