Advanced Derivatives Market Strategies

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 Basic Info Course on Derivatives
Level Advanced
Commitment  8 days (2hrs per day)
Language English
Scheduled Date  27th April 2024



Description

This 16-hour STP course - Advanced Derivatives Market Strategies is designed for experienced applicants to expand their knowledge of derivatives and develop new trading strategies. The course covers topics such as advanced options strategies, volatility trading, option greeks, and more. Students should have a solid understanding of basic derivatives concepts before taking this course. By the end of the course, students will be able to implement more complex strategies to trade and manage risk in the derivatives markets.

What Will I Learn

You will be able to:

  • explore and analyze different types of derivatives such as options, futures, forwards, and swaps, and their applications in financial markets.
  • implement trading strategies using advanced derivatives instruments to achieve specific financial objectives such as hedging, speculation, and arbitrage
  • communicate effectively about advanced derivatives trading strategies, using appropriate financial terminology and concepts
  • identify opportunities to network with industry professionals, which can be beneficial while pursuing a career in the financial markets
  • apply theoretical models, such as Black-Scholes, to price and value derivatives, and use them to make informed investment decisions
  • assess the risks associated with advanced derivatives trading strategies and implement risk management techniques to mitigate potential losses

Curriculum

  • Types of Derivative Contracts
  • Characteristics of Derivatives
  • Derivatives Compared to Securities
  • Derivatives Defined

  • Futures Terminology and Contract Features
  • Physical Delivery to Close a Futures Position
  • Cash Settlement, OTC Derivatives
  • Futures Clearinghouse and Third Party Contracts
  • Futures Margins and Futures Contracts

  • Option Fundamentals: Contract Features and Terminology
  • Option Contract Example: Long Call Position
  • Option Pricing Basics
  • Time Value, Intrinsic Value and Moneyness
  • Short Option Positions
  • Investment Characteristics of Options
  • Overview of Long Put, Short Call and Short Put Positions

  • Introduction to Profit diagram of long & short call
  • Introduction to Profit diagram of long & short put

  • Meaning of Options
  • Derivatives and Trading Strategies using Options
  • Basic Option Strategies
  • Complex Option Strategies

  • Meaning of Options Price
  • Determinants of option price and the Black-Scholes model

  • Visualizing option exposure and Greeks
  • Hedging an options book: Greeks for portfolio

  • Volatility smile and associated trading strategies
  • Hedging volatility risk and the Vanna-Volga method



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