Options Markets - EveningOptions Markets I is a basic to intermediate level program that provides participants with an extensive, in-depth introduction to today's options markets. The program begins with a review of option contract basics: fundamental aspects of puts and calls; terms and definitions; factors influencing option values. Presentation will address the risk/return characteristics of individual contract positions in addition to their use in various directional, volatility and arbitrage trading strategies. Subsequent discussion will introduce pricing models (Black-Scholes and binomial), their use in quantifying pricing dynamics (the |
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| Floor and compliance personnel, trade support staff seeking advancement and marketing staff. |
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| No advance preparation required. |
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Students will be able to:- Recognize and correctly interpret option related terminology
- Explain the risk/return characteristics of long and short put and call positions
- Describe the
- Recognize typical directional, volatility and arbitrage trading strategies, as well as the risk/return characteristics and implied market view of each
- Describe the characteristics, basic assumptions, inputs and applications of widely used options pricing models (Black-Sholes and binomial)
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| Financial calculator required |
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SESSION 1- Introduction to Options
- Option Basics
- Option Market Terminology
- Types of Options
- Trading Strategies and Risk Management
- Buying Options
- Buying Calls
- Buying Puts
- Option Buying Strategies
| SESSION 2- Selling Options
- Selling Calls
- Selling Puts
- Option Selling Strategies
- Basic Stock and Option Strategies
- Covered Writing
- Writing Covered Calls
- Hedging with Long Options
- Protective Put Buyng
- Collar
|  | SESSION 3- Option Markets
- Exchange Traded (Listed) Options
- Over-the-Counter (OTC) Options
- American, European and Other Styles of Options
- Option Pricing Basics
- Factors Impacting Option Prices
- Valuation Relationships
- Put/Call Parity
| SESSION 4- Types of Options
- Equity Options
- Fixed Income Options
- Interest Rate Options
- Futures/Forwards Options
- Currency Options
- Exotic Options
- Option Pricing Dynamics
- Option Pricing Models
- Black-Scholes
- Binomial Pricing Models
| | SESSION 5- Option Spread Trading
- Directional Strategies
- Bull Spreads
- Bear Spreads
- Volatility Trades
- Straddles
- Strangles
| SESSION 6- Volatility Trades (Continued)
- Ratio Spreads
- Reverse Ratio Spreads
- Butterfly Spreads
- Reverse Butterfly Spreads
| | SESSION 7- Arbitrage Strategies
- Conversions
- Reversals (Reverse Conversionss)
- Box Spreads
- The Market as a Bank
- Credit Boxes = Borrowing from the Market
- Debit = Investing in the Market
| SESSION 8- Option Pricing Revisited
- The
- Delta
- Gamma
- Theta
- Rho
- Vega (Kappa)
- Option Pricing Models
- Trading and Valuation Applications
| | SESSION 9- Exotic Options
- Barrier Options (Knock-ins and Knock-outs)
- Digital (Binary or Bet) Options
- Look Back and Modified Look Back Options
- Mid Atlantic (Bermudan) Options
- Asian Options
- Ratchet and Cliquet Options
- Caps, Floors and Collars
| SESSION 10- Options and Financial Engineering
- Convertible Bonds
- PERCs, DECs and other Mandatory Convertible Securities
- Structured Products
- Capped Notes
- Equity Linked Notes and Deposits
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| Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only. |
Lunch included for all students taking day classes. |
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