Analysis Techniques & Strategies
Bid-Ask Models are a way of calculating bid/ask spreads for theoretical option prices. A market maker will apply a bid/ask spread to manage the risk involved with providing market liquidity. The Bid-Ask Models allow you to mimic this type of valuation to more accurately model real-world activity by creating a reasonable spread around a theoretical option value. This provides the ability to generate more realistic profit/loss profiles in OptionStation.
The following bid/ask models are available in OptionStation: