| Price | £975.00 + VAT | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Duration | 1 day | ||||||||
| Location | London | ||||||||
| Available Dates |
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Session 1 - Option Fundamentals
o Option classes: calls & puts
o Definitions & key features
o Relevant examples
o Contract specs
o Delegates to access various exchange websites and answer questions about relevant (to delegates) option contracts
o Finding settlement prices
Session 2 - Fundamentals continued
o Key point: inter-relationships of option prices
o Trading options vs trading futures
o Definitions
o Examples
o Contract specs revisited
o European-style vs American-style
o Exercise and assignment
Session 3 - Using Options
o Hedging - price protection
o Speculation
o Arbitrage - option market making
o Key language - natural longs & shorts
o Detailed case study - natural short
" Hedging by buying options - problems
o Creating a hedging decision tree
o Delegates work collaboratively to address a case study of a natural long
Session 4 - Hedging contd. & Speculation
o Long options:
o Short options:
o Risk reward- futures vs options
Session 5 - Basic option strategy
o The option trading decision
o Long options vs short options
o Long call
o Short call
o Long put
o Short put
o Creating pay-off charts
Session 6 - Introducing option price & value
o At-the-money
o In-the-money
o Out-of-the-money
o Historical context
o Methodology - Black Scholes
o Underlying
o Time
o Interest rates
o Volatility