Using Corporate Event Data to Navigate Low-Latency in Equity Options: Strategies for Institutional Traders and Market Makers
Abstract
This just-released whitepaper explores new trends in the development of event-based trading signals in the equity options market. Citing contemporary academic research into options pricing and volatility, it examines the reasons to use predictive corporate event data to drive options trading decisions, especially within the context of increased low-latency and high-frequency trading (HFT) market makers in the market.
Topics covered include:
- Combining post-trade execution quality analysis with pre-trade contextualized indicators of price movements to effectively mitigate risk and exploit market inefficiencies with options.
- Building competencies around event data—sourcing it, qualifying its accuracy, digesting it, and putting it into action in a low-latency setting.
- How corporate “body language”— changes to the event calendar — can provide accurate, predictive signals as to the state of the company’s health.
