Editing Volatilities

By default, the option volatilities in CityTrader are automatically set to use the market implied volatilities. While this works in many cases, there are times when a user may want to set a specific volatility for an option or group of options. CityTrader allows user to adjust individual points on the curve or the entire volatility curve at once.

Once a user sets a volatility curve, the system won't update that curve until the user makes another change the curve, or turns back on autofit.

Adjusting the Entire Volatility Curve

To adjust the entire volatility curve, simply open the Vol Manager tab for the option group. If the Reset Zoom button is shown, click it. Now, simply grab the curve and move it to the desired location.

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Adjusting Individual Points on the Volatility Curve

To adjust individual points on the volatility curve, open the Vol Manager tab for the option group. If the Reset Zoom button isn't shown, highlight the portion of the chart that contains the point(s) you would like to adjust. Now, grab the individual point and move it to the desired location.

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Re-Enabling Autofit

After the user has adjusted the volatility curve, the system won't automatically update the curve based on market data. To re-enable this feature (and discard any previously made changes) open the Vol Manager and press Reset to Autofit.

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