The Challenge

OptionBazaar LLC wanted to create a web site that would be a one-stop resource in the complicated financial field of Over-The-Counter (OTC) equity options. The site needed to deliver highly complex analytics to its target audience of institutional investors, corporate treasurers, and other qualified institutions. At the same time, the site needed to frame this content in a way that was intuitive and accessible for users.

OptionBazaar also wanted to create a platform in which its audience could connect with dealers and brokers specializing in equity options.

In addition, the company wanted to include robust portfolio management capabilities that would let users quickly track their positions and risks in this extremely volatile arena.

The Solution

Solveda provided the analysis, design, and deployment for the OptionBazaar.com web site. Solveda’s team used WebSphere, Java, and SOFIA to create a site that delivered the complex financial analytical tools with an emphasis on speed and usability. Authorized users are able to make a wide variety of computations that take into account such factors as underlying price, volatility, interest rate, and time to maturity.

OptionBazaar’s analytics engine lets users drill in on selections by modeling different option types and harnessing its power to analyze the values of options in changing conditions. In addition to the analytic tools, users can manage their portfolios and track profit/loss daily.

The counter-party feature offers users an open marketplace in which they can place orders with registered dealers and brokers.

www.OptionBazaar.com

The fully functional OptionBazaar site is the definitive online resource for equity options. Registered users can crunch the field’s complex numbers, model and track their portfolios, and place orders.

Navigation is anchored by the following features:

• My Worksheets: Maintain analytical information about a user’s options.
• My Orders: Place live orders to registered dealers/brokers; keep track of all present and past orders.
• My Portfolio: Maintain portfolio and use the analytics engine to gauge performance and risk.
• My Account: Control personal profile and manage counter-party relationships.
• General: Invite dealers/brokers of choice to participate.

Intuitive graphics drive an easy-to-use interface that mines the underlying power of the analytics engine. This interactive engine provides instant access to rich analysis features, displayed in such a way that, at a glance, registered users can see the effects of changing interest rates, volatility, and strike and spot prices. The powerful, fast engine provides the essential information needed to determine which combination of inputs creates optimal deals.

OptionBazaar’s OTC Equity Option Models system drives the site. Using this tool, users can choose a model from a comprehensive list of option types and equity forwards. The models encompass most of the standard OTC equity options currently traded in the market. The modeling system was built with six keys in mind:

• High Performance: The selected models can calculate price and risks on a real-time basis in rapidly moving markets.
• Easy to Use: Most users are not quantitative analysts. Models with dubious merits that only Wall Street “Rocket Scientists” can understand were omitted.
• Easy to Maintain: OptionBazaar’s models do not require an excessive amount of market rate inputs. Most investors and traders prefer to use market rates that are sufficient for pricing equity options.
• Reliability: Some computationally intensive models tend to produce abnormal results for long-term options in challenging market conditions, especially, with a high volatility. The OptionBazaar models will always give stable, reliable results.
• Comprehensive: The list of option models available at OptionBazaar is continually expanding, reflecting the interests of users and the popularity of options.
• Market Standards: All models at OptionBazaar are based upon published results and recognized as the standard models among professionals. Many dealers and brokers at major banks actually prefer the models adopted by OptionBazaar.

This information is a partial reference displayed as information for Internet users. For additional details about any of our projects or capabilities please feel free to contact us at info@solveda.com