TT's Options trading tools provide traders with all the tools they need to view and analyze option markets, identify opportunities, and assess position risk.
All TT Standard and TT Pro users may view real-time options market data, create custom options strategies, send and respond to RFQs and place orders for options instruments and strategies using a variety of order tickets and automated tools.
TT’s Advanced Options Package is an add-on that enables options analytics and other powerful tools for viewing and trading options.
The following table compares the basic options features and functionality that are included with TT Standard and TT Pro versus the advanced features that require enablement of the Advanced Options Package.
|Real-time Market Data||✔||✔|
|Submit and monitor RFQs||✔||✔|
|Theoretical Values and Greeks||✔|
|Options Trade Monitor||✔|
|Autofit Vol Surface||✔|
|Custom Vol Surface||✔|
|Position and Risk Analysis||✔|
|Options Risk Matrix||✔|
TT calculates theoretical values, Greeks and implied volatility using industry-standard options models. The calculated values may be displayed in several widgets to help traders evaluate options markets and positions.
Options Trade Monitor displays time and sales data for a selected family of products and provides details for each trade. The Options Trade Monitor also includes a robust, multi-layer filtering tool to narrow the display of trades by product, strike, order quantity, days to expiration and more.
The Watchlist widget provides the ability to monitor market data for selected instruments and strategies as well as Greeks and theoretical values of user-defined options strategies before actually submitting them to the market.
Greeks and theoretical values used across the widgets in the TT platform are based on a fitted vol curve calculated using industry-standard options models. TT dynamically calculates a Fitted Vol Curve to smooth outliers and address strikes with wide bid/ask spreads or no market at all.
Users may leverage the Vol Curve Manager to create custom vol curves. The custom vol curves can then be used as an alternative to the autofit vol surface for calculating theoretical values and Greeks.
The Options Risk widget displays options positions, P&L and risk metrics for individual contracts and aggregates those values at the expiry and product levels. Users may also apply shocks to the underlying price and/or volatility to assess how positions perform under various market conditions.
The Options Risk Matrix displays the performance of an options portfolio under multiple user-defined scenarios. Traders can enter a series of changes to the underlying price as well as changes in volatility. Each cell in the matrix displays P&L and Greeks where the underlying future's price and global volatility adjustments intersect.
The Order by Volatility or OBV order type allows users to place orders based on volatility instead of price. The OBV order type automatically re-prices working orders to price levels with the desired volatility.