Options - Online

Building on the Derivative Instruments course, this intensive intermediate level course explores the different types of option products, including options on equities, indexes, futures, foreign exchange and interest rates. It illustrates option combination trading strategies, including horizontal and vertical spreads and volatility plays. Participants explore the various factors that have an impact on option pricing, and learn how to apply the Binomial and Black–Scholes option pricing models. The course also demonstrates trading strategies and portfolio management techniques utilizing the Greeks.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam with a score of at least 70% in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

Available TodayOnlineUSD$375
Instructional Method:
Self-Study
Level: Intermediate

CPE CREDITS
7
Floor and compliance personnel, trade support staff seeking advancement and marketing staff.
Students will be able to:
  • Identify the types of options and the risks associated with them
  • Describe the value of an option at expiration
  • Recognize the concept of
  • Calculate the time value of an option
  • Recognize applications for stock options.
  • Identify index options and how they are used.
  • Discuss interest rate options and their role in investment strategies.
  • Recognize the uses of caps, floors, and collars in managing investment risk.
  • Recognize ways that spreads can be used as combination strategies.
  • Identify traits of specific portfolio management strategies.
  • Identify how different kinds of volatility plays make money.
  • Identify the concept of put-call parity.
  • Describe the expected value pricing model and its uses.
  • Recognize the use of the binomial lattice model for option pricing.
  • Identify factors that impact option price. Define volatility as it relates to the price of the underlying security.
  • Identify the role of standard deviation in calculating annual volatility. Describe the impact of the volatility of the underlying on the option premium.
  • Identify the key factors affecting how options are priced. Recognize volatility indicators for using the Black-Scholes options pricing model.
  • Recognize each of the Greeks. Identify the role of Delta and Gamma in defining an option's sensitivity to change. Identify the role of Theta, Vega, Rho and Psi in defining an option's sensitivity to change.
Derivative Instruments or equivalent level of knowledge
"Overall the content was good."
"Online study is a very efficient way to get CPE."
"The material was well-presented, clear & understandable."
"The content of the course was very thorough. It was very direct and overall, I learned a lot."
  • Derivative Instruments - Online
  • Forwards & Futures - Online
  • Risk Management Using Derivatives - Online
  • Swaps - Online
  • Options Markets I
    • Options Terminology
    Topics covered include:
    • Call and put options
    • Exchange-traded vs. over-the-counter (OTC) options
    • Call option valuation at expiration
    • Payoff and value profiles
    • Option valuation before expiration
    Duration: 1 hour

    Fundamentals of Options Products
    Topics covered include:
    • Stock (or equity) options
    • Index options
    • Futures options
    • Options on interest bearing securities
    • Currency options
    • Interest rate options: caps, floors and collars
    Duration: 1 hour

    Option Combination Strategies
    Topics covered include:
    • Horizontal and vertical spreads: bull and bear spreads
    • Portfolio strategies: protective puts and writing covered calls
    • Volatility plays: straddles and strangles
    Duration: 1 hour

    Factors That Impact an Option's Value
    Topics covered include:
    • Put–call parity
    • Expected value model
    • Single- and multi-period binomial lattice models
    • Factors that determine the value of options
    Duration: 1 hour

    Pricing Options
    Topics covered include:
    • Mean and standard deviation
    • Historical vs. implied volatility
    • Probability distribution functions
    • Convergence of the Binomial Model with Black-Scholes
    • Black-Scholes model
    • American option pricing models
    Duration: 2 hours

    Option Sensitivities
    Topics covered include:
    • Introducing the Greeks
    • Delta
    • Impact of moneyness on Delta
    • Delta hedging
    • Gamma
    • impact of moneyness on Gamma
    • Theta
    • Vega
    • Rho and Psi
    Duration: 1 hour

                                Powered by NYIF