Should I backtest options with trades or quotes?

Use quotes for executable context and trades for activity context. Most realistic workflows need both.

Is the last trade the option price?

It is a historical execution print, not proof that the same price was available later.

What should a scanner display?

Display latest quote, latest trade, spread, volume, open interest, and timestamp freshness when possible.

API And Data Model Questions

What Is the Difference Between Options Quotes and Trades?

Why bid/ask markets and executed prints answer different questions in options data.

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Quick answerLast verified April 28, 2026

Options quotes show the bid and ask market that was available. Options trades show executions that actually printed. Quotes are usually better for fill simulation and spread checks; trades are better for activity, tape, and validating whether quoted prices turned into executions.

Quotes answer

What market existed?

Bid, ask, size, exchange, and timestamp context.

Trades answer

What executed?

Last sale prints, size, exchange, and conditions.

Backtesting

Use both

Quotes for fill assumptions, trades for activity context.

Why last trade alone is not enough

Options can trade sparsely. A last trade can be minutes or hours old while the current bid/ask market has moved. Using the last trade as executable price can make a backtest look better than reality.

A quote-aware model can reject wide spreads, stale quotes, and absent size. A trade-aware model can still measure whether the contract had real activity around the decision window.

Quotes versus trades

Data objectBest forBacktesting caveat

QuotesBid/ask spreads and fill simulationNeed freshness and size rules.

TradesExecuted activity and tape contextLast print can be stale.

SnapshotsCurrent state displayNot a historical fill model by itself.

API example

Verify the answer with listed data

quotes then trades

curl "https://api.cutemarkets.com/v1/options/quotes/O:SPY260515C00500000/?limit=100" \
  -H "Authorization: Bearer YOUR_API_KEY"

curl "https://api.cutemarkets.com/v1/options/trades/O:SPY260515C00500000/?limit=100" \
  -H "Authorization: Bearer YOUR_API_KEY"

Last verified

This Q&A page was last reviewed on April 28, 2026. Date-sensitive market calendars, provider docs, and listed contracts can change, so production workflows should verify the live source before trading or publishing an automated answer.