Course description
Options are a growing part of energy hedging and speculating. Understanding how they work allows any trader to make better choices in using them. Once you have a thorough understanding of the basic elements of options, you can learn how to take advantage of fast-changing markets to get the most out of your option positions with this course. Delegates learn how to apply complex combinations of calls and puts to hedge specific risks and take advantage of market expectations.
This two-day workshop not only extends your understanding of option dynamics, but also allows you to practice these skills through our unique trading simulations. In these simulations you will master directional and market-neutral trading strategies, as well as the application of complex strategies. You will also learn to match specific risk exposures and market expectations with complex strategies.
Includes Online Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive an online voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.
Do you work at this organisation and want to update this page?
Is there out-of-date information about your organisation or courses published here? Fill out this form to get in touch with us.
Content
- The impact of option deltas on profits and losses
- How option gamma affects your price exposure
- The benefits and costs of time decay
- How market volatility affects options
- Option hedging techniques, such as delta hedging
- How to combine options to create other options, and why it works
- Important characteristics of extrinsic (time) value
- Different ways to calculate option values
- Exercise styles and what impact they have
- Options on price spreads
- What the pricing models don't measure
- Directional and market neutral trading strategies including:
- Covered call and puts
- Call and put spreads
- Financed call and put spreads
- Ratio writes and backspreads
- Straddles and strangles
- Directional straddles
- Reduced-risk volatility spreads
- Butterflies and condors
- How to reduce the cost of using options as "insurance"
- How to tailor sophisticated options strategies that exactly match an anticipated market outcome
- Matching specific risk exposures
- Mixing different types of options