![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/02\/StressTesterOverview.png\")
This is where Quantcha\u2019s stress tester comes in. It provides\nan easy and flexible way for investors to experiment with different settings to\nproject the market value of their portfolio at a future date. With this data in\nhand, better informed decisions can be made for hedging out these risks.<\/p>\n\n\n\n
![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/02\/StressTesterPresets.png\")
It\u2019s easy to use.<\/strong> It automatically imports your portfolio, so there\u2019s no need to do any special work to set it up. Settings can be easily adjusted using presets or custom values, and the results are simple to understand. It even calculates the expected change in margin requirements for portfolios with naked positions.<\/p>\n\n\n\n It\u2019s flexible.<\/strong> Every portfolio is going to have its\nown weaknesses, so it\u2019s important to be able to customize the model to meet\nexact needs. The stress tester allows adjustment of global market settings,\nlike the risk-free interest rate, as well as underlying settings, like the implied\nvolatility and price for each stock.<\/p>\n\n\n\n It\u2019s powerful.<\/strong> It uses smart defaults to initialize the scenarios with feasible volatilities derived from the implied volatility surface for the underlying. Future IVs for each option are modeled relative to the target change in the underlying spot IV so that users don\u2019t have to try and guess the right option IV values to use when pricing option positions that are still open on the target date.<\/p>\n\n\n\n Want to see the stress tester in action? Check out our video on YouTube<\/a>. We\u2019re always adding more presets, visualizations, and other features, so if you don\u2019t see something you need, please reach out to us at hello@quantcha.com<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":" Option investors have an incredibly broad range of strategies at their disposal. Whether using options to hedge an equity position, implement leveraged plays on directional views, capture volatility opportunities, or virtually anything else, there\u2019s a lot that can go right. And wrong. Understanding what\u2019s likely to happen in the worst-case scenario helps investors plan for\u2014and … Continue reading “How do you know what will happen to your portfolio in the worst-case scenario?”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/392"}],"collection":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/comments?post=392"}],"version-history":[{"count":2,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/392\/revisions"}],"predecessor-version":[{"id":397,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/392\/revisions\/397"}],"wp:attachment":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/media?parent=392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/quantcha.com\/news\/wp-content\/uploads\/2022\/02\/StressTesterYouTube.png\")
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