Commodity Options Part 3 - VIRTUAL DELIVERY

This virtual course is aimed at delegates who have completed Parts 1 and 2 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 explore and apply the advanced level concepts and tools of the Commodity Options markets. We draw on markets that are representative for all delegates to ensure relevance to every situation. This is the third and final part of a series of three modules in the Commodity Options Series.

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 payment must be received one day prior to the start date

Course Information

Price £995 + VAT
Duration 2 days
Location Virtual: EMEA/Asian Time Zone
Available Dates
Nov 18 2024  Register Now

Who Should Attend

  • Personnel from the commodity market, trading companies and other individuals who wish to gain an understanding of commodity options and their uses
  • Risk management and financial departments of commodity producer and commodity trading companies
  • Commodity supply and distribution companies
  • Major commodity consuming businesses
  • Trading companies, banks, brokers, government, regulators and associated organisations

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

o Day 1 0845 - 0900: Technology check in to ensure all technology working and that all delegates have required access.

o 0900 - 0945: Session 1 - Key principles & volatility

  • Introduction
  • Options - key principles

o Intrinsic value & time value - put-call parity

o Option pricing, relationships & modelling

o Option strategy - the trading decision

o Option prices & delta

  • Volatility

o Key types

o Uses

  • Q&A session

o 1000 - 1045: Session 2 - Implied volatility ranges & interpretation of volatility

  • Implied volatility ranges

o Across asset classes

o In relevant contracts

  • Interpretation of implied volatility numbers

o Probability theory

o Translated to markets & metrics

  • Annual basis
  • Other periods (month, week, etc.)
  • Q&A session
  • Exercises

o 1100 - 1145: Session 3 - Volatility skew

  • Skew in mathematics - probability theory
  • Market psychology and the reasons for skew
  • Volatility skew in practice

o Across different asset classes (positive/negative/smile)

o In specific relevant contracts

o Ways to monitor skew

  • ICE Option Analytics- skew in practice
  • Empirical observations
  • Q&A session
  • Exercises

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

o 0900 - 0945: Session 4 - Option market-making & gamma

  • Market-makers in real-world option markets

o Role of market-makers

o Standard practices of market-makers:

  • Delta hedging & neutrality
  • Trading volatility
  • How market volatility moves
  • The primary Greeks revisited
  • Gamma - the key secondary Greek

o Definition

o Examples

o Trading long gamma

o Trading short gamma- being whip-sawed

o Gamma rent

  • Q&A session
  • Exercises

o 1000 - 1045: Session 5 - Advanced option strategy

  • The option trading decision revisited
  • How to optimise potential returns
  • Long premium strategies

o Long vertical spreads

o Variations on verticals

  • Selling options safely

o Short straddle vs iron fly

o Short strangle vs iron condor

  • Further strategies (in brief)

o Collars (fences) revisited

o Horizontal spreads

  • Q&A session
  • Exercises

o 1100 - 1145: Session 6 - Option spreads & combinations

  • OTC exotic structures

o Accumulators

  • Option portfolio risk management

o Heuristic rules

o Portfolio Greeks

o What-if reports

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