👉 Option engineering is the process of designing and structuring financial derivatives, particularly options, to meet specific client needs or strategic objectives. It involves creating customized options with tailored features such as payoff structures, strike prices, and expiration dates to optimize risk management, enhance returns, or achieve other financial goals. This process requires a deep understanding of market dynamics, risk assessment, and the underlying assets being optionized. Option engineers use mathematical models, simulations, and market data to design options that align with the client's risk tolerance, investment strategy, or operational requirements. The ultimate goal of option engineering is to provide clients with flexible and efficient tools to navigate complex financial markets, manage uncertainties, and capitalize on opportunities.
