Global Markets Training

In this one day workshop delegates will learn: The advantages and disadvantages of options compared to delta one products like futures and forwards; Options terminology, trading mechanisms and pricing methodologies; How to model the profit and loss potential of options and their risk factors in custom Excel templates; The different strategies such as bull and bear spreads, straddles, butterflies, time spreads, ratio spreads, conversions and reversals, and how to model their payoffs and risk factors.

Delegates will be equipped with a PC and Excel (but can also bring their own laptop if they wish).
 

	Date: October 20, 2010
	Duration: One day (9.00am to 5.00pm)
	Location: Apex City of London Hotel – London, UK
	Trainer: Stephen Aikin
	Course fee: £895 + VAT – Register online

Course Outline

Introduction to Options
+ Delta one profiles versus option payoffs
+ Option terminology: Calls and Puts
+ Options Mechanics and Trading Conventions
+ The Option Premium: Intrinsic and Time Values
+ Basic premium valuation
+ Moneyness and Leverage
+ Expiry payoffs
+ WORKSHOP: Modeling Option Payoffs

Option Pricing and Risk Management
+ Pricing options prior to Expiry: An intuitive approach
+ Option Models: Black Scholes, BOPM and Monte Carlo
+ Early exercise considerations
+ Volatility: Historical and Implied
+ Risk management: The Greeks – Delta, Gamma, Theta, Vega and Rho
+ Portfolio management – Delta hedging: The Gamma/Theta trade-off
+ WORKSHOP: Option Pricing and Greeks Modeling

Option Strategies
+ The benefits of option strategies
+ Option strategies: Bull/Bear Spreads, Butterflies, Straddles, Time spreads, Ratio spreads
+ Identifying Volatility trades versus Directional trades
+ Identifying strategy risks: Early exercise, Pin risk and Sticky Strikes
+ WORKSHOP: Option Building Blocks – Using option strategies to modify payoff and risk