The Volatility spreader is a dispersion trading strategy, allowing you to capitalize on any temporary divergence between the implied volatilities of correlated options products.
As a relative value trading strategy, the app takes positions when the volatility differential between options series exceeds a predefined threshold, while keeping the portfolio delta-neutral in tandem with the Delta hedger app. Featuring flexible contract selection, fill re-balancing and hidden execution, the Volatility spreader is an essential tool in the professional volatility trader’s arsenal.
- Fully-automated dispersion trading strategy.
- Flexible alerting and safety measures.
- Configurable execution and hedging parameters.
- Options sheets for the selected contracts in the Volatility spreader, with the algo’s orders highlighted in green.
- The Volatility spreader along with working child orders and execution configuration.
- The Volatility spreader panel, showing algorithm parameters.
- A portfolio view showing current positions per strike and position greeks.
- An alerts window – upon detecting an opportunity, the Volatility spreader can optionally trigger an alert for manual confirmation before proceeding.