How do you evaluate Raw and Normalized Options Market Data?
Raw options market data feeds should generally include basic equity prices and underlying fundamental data direct from an exchange or the Options Price Reporting Authority (OPRA) prices. You can read more about OPRA here.
A normalized options data feed is more manageable through a reduced bandwidth profile helping to manage the infrastructure. For organizations that trade options, a stronger normalized options data feed would also include:
- Implied volatility for the National Best Bid and Offer (NBBO)
- Volatility surfaces
- Dividends, rates and synchronized underlying price data to support calculations
This information builds a backbone for surface modeling accuracy, which is vital for live trading, risk management and modeling.
SpiderRock is distinguished by its deep expertise in options market data. We specialize in calculating accurate, real-time and historical analytics to offer a pathway for a complete options strategy execution stack including: