Option Adjusted Spread: The Efficient Risk Leverage Mechanism for Beginner Traders and Seasoned Professionals
Motivation at SAF Services comes from their clients’ continued results and positive returns. SAF Services’ single line commitment is to innovate new mathematical strategies designed to generate a positive revenue stream via the Option Adjusted Spread generations of mathematical certainty of profit. These advanced software algorithms have been developed exclusively for some of the largest financial powerhouses though has traditionally been reserved solely for their benefit. Until today.

Adelaide, Australia, December 19, 2014 –(PR.com)– What is Option Adjusted Spread?
Nowadays a large number of the financial trading markets have progressed to web based internet marketplaces improving the efficiency of immediate activities and international accessibility to a wider investor pool.
Consequently, trading the markets on the internet have become popular for many. Thus, it has become extremely important for companies as well as investors to select products that can help them to produce benefit whilst minimising any threat or potential risk problems.
Option Adjusted Spread (OAS) refers to a measurement of the spread of a fixed-income security asset and the risk-free rate of return, which is adjusted to take into account an embedded option. Typically, an analyst would use the Treasury securities yield for the risk-free rate. The spread is added to the fixed-income security price to make the risk-free bond price the same as the bond.
In other words, a spread arrangement between two parties that permits the interchange of the roles of buyer and seller. This means that both the ‘buyer’ and the ‘seller’ buy as well as sell to the other party. In this case the agreement benefits both the parties involved as the term suggest.
How Option Adjusted Spread (OAS) works in finance and trading.
The option-adjusted spread helps investors compare a fixed-income security’s cash flows to reference rates, while also valuing embedded options against general market volatility. By separately analysing the security’s two components – the bond and the embedded option – analysts can determine whether the investment is worthwhile at a given price. The OAS method is more accurate than simply comparing a bond’s yield to maturity to a benchmark.
The OAS mechanism takes into account two types of volatility facing fixed-income investments with embedded options: changing interest rates (which affect all bonds) and prepayment risk. The shortfall of this approach is that estimates are based off of historical data, but are used in a forward-looking model. For example, prepayment is typically estimated from historical data, and does not take into account economic shifts or other changes that might occur in the future.
OAS is most likely to be used in the valuation of mortgage-backed securities. In this sense, the prepayment risk is the risk that the property owner may pay back the value of the “mortgage” before it is due. This risk increases as interest rates fall. A larger OAS digression implies a greater return for greater exposure.
Introducing OAS-App by SAF Services
OAS App, a newly released software applications developed by Australian-based SAF Services, makes it possible to monitor all of these opportunities using a simple user interface, finding new opportunities as well as highlighting the best approach to maximise your return. All the earnings from this system are totally tax free. This is because of the fact that the cash is already taxed similarly to lottery winnings.
OAS-App is made up of an algorithm that crawls prices on different sports events and detects available profit opportunities that exist. OAS calculations set to trigger if and when a person places a wager on all the probable outcomes that is, win, draw and lose. For example in football game, OAS App will still determine a profit irrespective of who wins the game.
Because of the numerous sporting events which happen in different parts of the world every day, there are very many OAS opportunities at any given moment of the day.
Who is OAS-App for?
OAS App can be used by anybody who wants a mechanism to make some additional cash; from students to the working class.
Due to the nature and simplicity of the OAS-App interface, users can save time and source predictable returns; filling a gap in the OAS market industry.
It is important to note, that it is not a requirement for a person to physically watch the events in order to participate. Some people have reportedly made thousands of dollars in a month by simply using OAS App on events without even watching them. Smart thinking by SAF Services.
For more information on the OAS-App by SAF Services, please contact info@safervices.com.au or visit www.safservices.com.au.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate