Options workshops


1 Week Cycle


Program Overview

Options Strategies is an intermediate to advanced level program that provides participants with an extensive, in-depth approach to today's options markets. The program begins with a quick review of option contract basics. 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 greeks) as well as trading and risk management applications. The program will apply these issues to a range of different options (equity, futures, currency, etc).

Learning Objectives

  • Recognize and correctly interpret option related terminology
  • Explain the risk/return characteristics of long and short put and call positions
  • Describe the characteristics, basic assumptions, inputs and applications of widely used options pricing models (Black-Sholes and binomial)
  • Recognize typical directional, volatility and arbitrage trading strategies, as well as the risk/return characteristics and implied market view of each
  • Estimate the probability statements made by a volatility figure
  • Compare the risk profiles of option trades with the synthetic equivalent position
  • Discuss how changes in different variables will affect the value of calls and puts (delta, gamma, theta, vega, & rho)
  • Discuss the principles of volatility trading and how this type of trading can be profitable (Identify ways to make money trading both a long and a short gamma position)
  • Differentiate the various risk profiles created in choosing one hedge over another
  • Calculate historical volatility and evaluate the resulting data
  • Describe skew and kurtosis
  • Outline how skew and kurtosis affect the prices of OTM options
  • Define implied volatility curves over time and price: the term structure of implied volatility & the implied volatility

Course Package

  • Live explanation sessions with tutorials
  • 1 book
  • Multiple mock and sample exams

Registration Requirements

  • Original copy of transcript
  • Copy of your international travel passport
  • Copy of your ID
  • Passport-size photo
  • CV (curriculum vitae)
  • Enrollment fee (non-refundable)

Part I Topics: Introduction

  • 1. Concepts and terms
  • 2. Price
  • 3. Pricing models
  • 4. Options descriptors
  • 5. Futures options

Part II Topics: Options as Direct Indicators

  • 1. Technical indicators

Part III Topics: Options as Contrary Indicators

  • 1. Contrary indicators
  • 2. IV
  • 3. Put/Call ratio

Part IV Topics: System Trading

  • 1. Choosing a system
  • 2. System examples
  • 3. Expiration effects
  • 4. Protecting a Stock Portfolio
  • 5. Options v/s Futures as Portfolio Protection
  • 6. Protection is not dynamic: tracking error

Part V Topics: Trading Volatility

  • 1. Neutrality
  • 2. Volatility as a Strategic Indicator
  • 3. Volatility Skew
  • 4. Price Distribution
  • 5. Trading the forward skew
  • 6. Trading the reverse skew

Part VI Topics: Buy Low, Sell High... Volatility That Is

  • 1. Out of Line Volatility
  • 2. Reasons for volatility changes
  • 3. Straddle Strategy
  • 4. Selling Volatility

Who Should Attend

Traders, assistant traders, sales professionals, financial analysts, cash/money managers, auditors and compliance professionals.