Option traders need objective structure to provide context to the movement of both price and volatility. JSAnalytics present a PriceMap Framework for both the underlying market and its associated volatility index that offer a comprehensive picture of volatility risk and market state alignment. Knowing risk and market structure, improves timing by identifying areas where liquidity can be anticipated for improved strategy construction and position management adjustments.

Solution Scenarios

• Trade Idea Generation – Find new opportunities that align with volatility expectations.
• Risk Awareness– Improve awareness by knowing the context of the current risk state.
• Hedge Strategy Overlay– Improve delta and gamma hedging with defined structure.
• Strategy Construction– Enhance spreads by aligning strike prices with risk structure.
• Strategy Development – Create new directional or volatility based trade programs.

Risk Awareness Example

Option trading has its own set of unique risks. Our Analytics improve a traders risk awareness by identifying the price structure that defines the current risk state. When real-time events are viewed through this context, awareness is improved along with the ability to anticipate trading opportunities. This example shows how our Analytics are used to enhance awareness and aid in managing risk.