Options Markets - Evening

Options Markets is a basic to intermediate level program that provides participants with an extensive, in-depth introduction to today's options markets. The program begins with a review of option contract basics: fundamental aspects of puts and calls; terms and definitions; factors influencing option values. 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 geeks) as well as trading and risk management applications. The program will apply these issues to a range of different options (equity, futures, interest rate, currency, etc), financial instruments with embedded options (convertible securities and structured notes/deposits) and exotic options (barrier, look-backs, ratchets, etc).

14-Oct-2010 -- 09-Dec-2010New YorkUSD$2275
NY Institute of Finance - Midtown5:45pm - 8:15pm Instructional Method:
Group-Live
Instructor(s): [ Douglas Carroll; ] Thu Level: Basic

CPE CREDITS
20.0
Floor and compliance personnel, trade support staff seeking advancement and marketing staff.
No advance preparation required.
Students will be able to:
  • 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
Financial calculator required
"A+ to the instructor - very high caliber!"
"This course was enhanced because of the instructor's knowledge of the subject matter."
"It covered a broad range of topics with enough in-depth discussion."
"The material covered was very relevant to my job."
Scheduling Note
There will be no class session on Thursday, November 25, 2010 due to the Thanksgiving holiday.
SESSION 1
  • Introduction to Options
  • Option Basics
  • Option Market Terminology
  • Types of Options
  • Trading Strategies and Risk Management
  • Buying Options
  • Buying Calls
  • Buying Puts
  • Option Buying Strategies

SESSION 2
  • Selling Options
  • Selling Calls
  • Selling Puts
  • Option Selling Strategies
  • Basic Stock and Option Strategies
  • Covered Writing
  • Writing Covered Calls
  • Hedging with Long Options
  • Protective Put Buyng
  • Collar

SESSION 3
  • Option Markets
  • Exchange Traded (Listed) Options
  • Over-the-Counter (OTC) Options
  • American, European and Other Styles of Options
  • Option Pricing Basics
  • Factors Impacting Option Prices
  • Valuation Relationships
  • Put/Call Parity

SESSION 4
  • Types of Options
  • Equity Options
  • Fixed Income Options
  • Interest Rate Options
  • Futures/Forwards Options
  • Currency Options
  • Exotic Options
  • Option Pricing Dynamics
  • Option Pricing Models
  • Black-Scholes
  • Binomial Pricing Models

SESSION 5
  • Option Spread Trading
  • Directional Strategies
  • Bull Spreads
  • Bear Spreads
  • Volatility Trades
  • Straddles
  • Strangles

SESSION 6
  • Volatility Trades (Continued)
  • Ratio Spreads
  • Reverse Ratio Spreads
  • Butterfly Spreads
  • Reverse Butterfly Spreads

SESSION 7
  • Arbitrage Strategies
  • Conversions
  • Reversals (Reverse Conversionss)
  • Box Spreads
  • The Market as a Bank
  • Credit Boxes = Borrowing from the Market
  • Debit = Investing in the Market

SESSION 8
  • Option Pricing Revisited
  • The
  • Delta
  • Gamma
  • Theta
  • Rho
  • Vega (Kappa)
  • Option Pricing Models
  • Trading and Valuation Applications

SESSION 9
  • Exotic Options
  • Barrier Options (Knock-ins and Knock-outs)
  • Digital (Binary or Bet) Options
  • Look Back and Modified Look Back Options
  • Mid Atlantic (Bermudan) Options
  • Asian Options
  • Ratchet and Cliquet Options
  • Caps, Floors and Collars

SESSION 10
  • Options and Financial Engineering
  • Convertible Bonds
  • PERCs, DECs and other Mandatory Convertible Securities
  • Structured Products
  • Capped Notes
  • Equity Linked Notes and Deposits

Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.) Lunch included for all students taking day classes.

Lunch included for all students taking day classes.