Published 5 years ago on the Kesitys organization's page
The importance of Gamma-Hedging
GAMMA HEDGING
Gamma hedging is an essential operation for option traders who have to decide when to make their portfolio delta-flat. But this decision depends on market conditions and the trader's own positions and exposures, which can make gamma hedging a costly and time-consuming operation.
TEMPO
Our solution, TEMPO, is a plug-and-play API that automatically detects and signals statistically optimal gamma-hedging moments to its users.
It also assists options market-makers and volatility traders in determining better bid-ask spreads.
- TEMPO is based on advanced tools from stochastic dynamic programming, statistical learning and time series analysis. Its disruptive technology originated from prestigious academic institutions.
- TEMPO is the decision support software that reduces trading costs by 30% and improves a derivatives trader’s productivity by 10%.
- TEMPO is deployed as a RESTful API that follows the OpenAPI specification.
For more information, please contact us at contact@kesitys.com