You are here: Price/Risk Analytics > Model Navigator > Using the Model Navigator

Using the Model Navigator

Price/Risk Analytics uses current market data along with interest and dividend values to calculate implied volatilities and option model prices. Use the Model Navigator to modify pricing assumptions and recalculate the model price.

Note: Option model computation requires market data for both the option and its underlying. In the case of index options, the market data for the futures reference contract is also required.

To open the Model Navigator

From the Analytical Tools menu, select Model Navigator.

If you open the Model Navigator from the OptionTrader, it is automatically populated with all loaded option chains.
If you open the Model Navigator from a Quote Monitor, it will show options on all pages that have the Model or Imp Vol fields displayed, which require the model price calculation.

To display Model or Imp Vol fields on a Quote Monitor

Hold your mouse over a Market Data column to display the “+” icon, and click on it to show the column picklist.
Expand the Options category and select the Imp. Vol and/or Model fields.

The Imp Vol and Model fields display on the page, and all options contracts on the page now require a model calculation and will appear in the Model Navigator Contract Description pane. The implied volatility calculation is non-linear and may not converge for low vega options. In such cases, the Model Navigator will not provide an implied volatility estimate.

The Model Navigator window comprises three main sections: the Contract Description Pane which shows all available options in an expandable tree, the Volatility Model Pane which displays the volatility curve plots, and the Volatility Curve Table table which lists associated strike prices and implied volatilities.