Key Path Scenarios – Options



Keypath Scenarios – Complex Option Chains

Authors: D. Reid, B. Caemmerer - 3/11/05, Version 1.0

Introduction

The purpose of this document is to communicate the interaction model, and to provide a simple inventory of possible user scenarios, to direct and inspire future user research. These scenarios are based on interviews with subject matter experts. They are not prioritized as yet.

Next steps: UX will review with business and prioritize these scenarios for relevance, and propose a user research plan to guide personas, detailed scenarios, and interaction design for this project and for the benefit of the overall initiative.

Mind of the Options Trader

The options trader has an understanding of what, when, why, and how he will open or close a position. Various factors influence, inspire and motivate his behavior. However, there’s a common workflow that stands out. The following high-level interaction model illustrates the key decision making workflow:

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Let’s break down the needs and goals within each phase of the trader’s workflow.

Look (relative to the underlying)

User needs immediate access to a chain within the following context:

Underlying’s quote detail page

Balances & Positions screen

Options Order Entry screen

Stock Order Entry screen

SnapTicket (stock and options)

Research > Option Chain

Underlying list in a watch list

User has a specific idea vs. needs research:

Has a specific idea

a. User has a strong / specific idea of the position he wants to open – show me validating data, get me to the order entry ticket (may go directly there, then look for chain)

Moderate idea

b. User has a general idea about XYZ, wants to find a way to play it – show me some strategies for my bullish POV

Vague idea; needs more research

c. User is interested in XYZ, researching to develop a point of view – may start at Detailed Quote, go to option chain from there

User has a position in XYZ underlying equity:

owns XYZ (covered call)

Currently buying XYZ (buy/write)

No / not relevant (all others)

Compare

Wants a strategy to match an idea about direction

2 compare bullish strategies / compare bearish strategies

Wants a strategy to match an idea about time

4 compare calendar strategies

Wants a strategy to match an idea about volume

6 compare volatility strategies

Compares strategies re: lowest risk

Compares strategies re: highest gain

Compares strategies re: generating income

Compares options that are ATM, OTM, ITM

Compares different strategies at a given strike range

Act

places a trade to open a position

enters data to open a position, saves the order for future use

edits a saved order

reviews and places a saved order

creates a trigger to place an order under specific conditions

edits or cancels a trigger

Manage

Monitor a position as it evolves over time

2 Review data to choose best exit strategy re: minimizing loss / maximizing gain

Close an entire strategy

Close one leg of a strategy

Roll an entire strategy

Roll one leg of a strategy

Margin buying power has changed, affecting a credit position

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