How it works
We model the power plant as a strip of options—a combination of options contracts used as a market-neutral trading strategy when the market is bullish and the volatility is high. The combination may include daily peak options or off-peak CDS/CSS options. Strip options enable the plant owner to measure the exposure to market price changes, and quantify the intrinsic and extrinsic values of the asset. The strategy also enables the owner to hedge against the “Greeks” and helps monetize the extrinsic value of the asset.
To maximize revenues for our customers, we provide a wide range of modeling offers and hedging solutions.
Our modeling offers
- Power plant profitability assessment
- Development of models to represent power plant assets as spread options
- Evaluation of hedge quality of spread option sales and its impact on profitability
Our hedging solutions
- Virtual Power Plant (VPP): hedge the market risk of your asset up to DA
- Tolling Agreement: hedge the market risk, asset availability risk, and intraday exposure
- Dynamic delta hedging strategy: profit from market movements while keeping the risk to a minimum
We'd be delighted answering your questions.