Course Category

Options - Online

Building on the Derivative Instruments course, this intensive intermediate level course explores the different types of option products, including options on equities, indexes, futures, foreign exchange and interest rates. It illustrates option combination trading strategies, including horizontal and vertical spreads and volatility plays. Participants explore the various factors that have an impact on option pricing, and learn how to apply the Binomial and Black–Scholes option pricing models. The course also demonstrates trading strategies and portfolio management techniques utilizing the Greeks.

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer. Subscription period for this course is 90 days.

• Identify the types of options and the risks associated with them
• Describe the value of an option at expiration
• Recognize the concept of
• Calculate the time value of an option
• Recognize applications for stock options.
• Identify index options and how they are used.
• Discuss interest rate options and their role in investment strategies.
• Recognize the uses of caps, floors, and collars in managing investment risk.
• Recognize ways that spreads can be used as combination strategies.
• Identify traits of specific portfolio management strategies.
• Identify how different kinds of volatility plays make money.
• Identify the concept of put-call parity.
• Describe the expected value pricing model and its uses.
• Recognize the use of the binomial lattice model for option pricing.
• Identify factors that impact option price. Define volatility as it relates to the price of the underlying security.
• Identify the role of standard deviation in calculating annual volatility. Describe the impact of the volatility of the underlying on the option premium.
• Identify the key factors affecting how options are priced. Recognize volatility indicators for using the Black-Scholes options pricing model.
• Recognize each of the Greeks. Identify the role of Delta and Gamma in defining an option's sensitivity to change. Identify the role of Theta, Vega, Rho and Psi in defining an option's sensitivity to change.