Buyside traders who like to model their exchange-traded options strategies before executing them now can do it via Thomson Reuters.
In a first for modeling software company OptiosnScape, it has made its stand-alone modeling software now available alongside Thomson Reuters’ Eikon platform with full data integration.
The move gives option traders using Eikon access to OptionScape’s full spectrum of risk analysis and stress testing for their current and prospective strategies.
“By drawing on the rich data in Eikon, it [OptionScape software] will give them a powerful strategy analysis and decision support software tool for exchange-traded options,” Kris Carlson, global head of agriculture and metals at Thomson Reuters. “The visualizations OptionScape provides and the training with which it backs the product are a great combination to support our customers’ needs.”
OptionScape enables traders to gauge immediately the risks to which they are exposed, not only under current market conditions, but also under a wide range of changing conditions for the life of the strategy related to the underlying price, volatility and time. By conducting the analysis, traders can plan ahead, taking steps to limit losses and maximize profits based on changing conditions.
The software is made to be user-friendly with an intuitive user interface and can provide three-dimensional visualization of the results for any tradable option strategy. For instance, the software can turn a massive amount of raw data – equivalent to 50 million calculations or hundreds of pages – into usable information presented in a few digestible, three-dimensional surface diagrams, with colors indicating “danger zones” for traders and without losing information.
