Commodity Options Part 1: VIRTUAL DELIVERY

This virtual course is aimed at delegates with little or no existing knowledge of commodity options. The live sessions are led by experienced traders and trainers who engage to bring theory to life through real-world insight to the options markets.The aim of this program is to provide you with the basic concepts and tools of the options markets. We draw on markets representative for all delegates to ensure relevance to every situation.

Start Times Days 1 - 2: 09.00 London - 13.00 Dubai - 17.00 Singapore
End Times Days 1 - 2: 12.00 London - 16.00 Dubai - 20.00 Singapore

This virtual course is one of the ICE Education LIVE programs. We provide three phases to the course:
1. Pre-course: Access to the ICE Education learning platform for on-demand primer content.
2. Live Virtual Sessions: Trainer led live video sessions (as per the outline below). These are short focused sessions run over two mornings with practical activity and interaction throughout.
3. Post-course: On-demand content remains available and an optional live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.
All course payments must be received one day prior to the start date

Course Information

Price £925 + VAT
Duration 2 days
Location Virtual: EMEA/Asian Time Zone
Available Dates
Nov 12 2024  Register Now

Who Should Attend

  • New traders and brokers
  • New entrants to the futures and options markets
  • Support and operations people involved in the commodity markets
  • Sales and marketing personnel
  • Individuals working in organisations such as: trading companies, banks, brokers, commodity producers, consumers, refiners, distribution companies, government and associated organisations.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

o Day 1 -0845 - 0900: Technology check to ensure all technology is working and that all delegates have the required accesss

o 0900 -0945: Session 1 - Option Fundamentals

  • Introductions
  • Option fundamentals

o Option classes: calls & puts

o Definitions & key features

o Relevant examples

o Contract specs

  • Trade venue: ETO vs OTC
  • Q&A session
  • Exercises

o Finding settlement prices

o 1000 - 1045: Session 2 - Fundamentals continued

  • Explanation of sample option pricing screens

o Key point: inter-relationships of option prices

o Trading options vs trading futures

  • Exercise & assignment

o Definitions

o Examples

o Contract specs revisited

o European-style vs American-style

  • Option fundamentals: summary
  • Q&A session
  • Exercises

o Exercise and assignment

o 1100 - 1145: Session 3 - Using Options

  • Evolution of options & option markets
  • Option Uses - An introduction:

o Hedging - price protection

o Speculation

o Arbitrage - option market making

  • Using options to hedge - detail

o Key language - natural longs & shorts

o Detailed case study - natural short

  • Hedging with futures - limitations

" Hedging by buying options - problems

  • Hedging with "collars"

o Creating a hedging decision tree

  • Q&A session
  • Exercises

o Day 2 0845 - 0900: Technology check to ensure all technology is working and that all delegates have the required access

o Day 2 0900 - 0945: Session 4 - Hedging contd. & Speculation

  • Run through hedging case study exercise
  • Hedging with options: summary
  • Using options to speculate

o Long options:

  • Advantages of long options over futures
  • Speculative time-frames

o Short options:

  • Why sell options?
  • Case study - a warning!
  • Speculating with options: summary
  • Q&A session
  • Exercises

o Risk reward- futures vs options

o 1000 - 1045: Session 5 - Basic option strategy

  • Planning option strategy

o The option trading decision

o Long options vs short options

  • " Expiry pay-off charts

o Long call

o Short call

o Long put

o Short put

  • Speculative decision tree
  • Q&A session
  • Exercises

o Creating pay-off charts

o 1100 - 1145: Session 6 - Introducing option price & value

  • Key language - money-ness

o At-the-money

o In-the-money

o Out-of-the-money

  • " Option pricing

o Historical context

o Methodology - Black Scholes

  • Option pricing models

o Underlying

o Time

o Interest rates

o Volatility

  • Q&A on this session
  • Summary/round-up of day