Option Strategy and Pricing

This course  is designed  to give a in depth knowledge about the various strategies about Options that offers a bucket of possibilities to the market participants provided they take well-elaborated decisions. A detailed discussion about A detailed discussion along with illustrated Pay-Off diagrams for 'Call Spread’, ‘Put Spread’, ‘Long Straddle’, ‘Short Straddle’, ‘Risk Reversal', etc. Option strategies discover new trading opportunities and the various ways of diversifying their investment portfolio with a bright financial futures. Understanding the various pricing strategies covered under this course help in limit the risk and  maximize capital. Options traders can profit by being an option buyer or an option writer. Options allow for potential profit during both volatile times, and when the market is quiet or less volatile. This is possible because the prices of assets like stocks, currencies, and commodities are always moving, and no matter what the market conditions are there is an options strategy that can take advantage of it.

 

 

Course Outline:

Types of Option Strategies.

Options Trading - Interbank: How options are traded in the Inter-bank market.

Exotic Options: A discussion on 'Digital Options' and 'Barrier Options'.

Interest Rate Options: Types of interest rate options, such as - 'Interest Rate Caps’, ‘Floors', and 'Collars'.

Swaptions: Definition and their use. Difference between Swaption and a cap.  Option Pricing - Understanding options pricing, and its determinants

Pricing Models: A detailed discussion on 'Black-Scholes Model' with illustrations. Pricing strategies using a live Black-Scholes spreadsheet.  Pricing an Exotic option using Binomial Trees: Stepwise binomial tree construction. Pricing 'Exotic Options' using a sample pricer from John Hull.

Pricing Exotic Options (such as - barrier options, interest rate cap/ floor pricing and interest rate collar pricing, etc.).  Introduction to 'Option Greeks'. Measuring different dimensions of risk in an option position, and illustrations with the help of a 'Black-Scholes' spreadsheet. Delta Hedging in practice.

Operational Aspects of an Option Deal: Key operations specific to options (such as - type of deal, settlement date, etc.).  Option Pricing - Understanding options pricing, and its determinants

Pricing Models: A detailed discussion on 'Black-Scholes Model' with illustrations. Pricing strategies using a live Black-Scholes spreadsheet.  Pricing an Exotic option using Binomial Trees: Stepwise binomial tree construction. Pricing 'Exotic Options' using a sample pricer from John Hull.

Pricing Exotic Options (such as - barrier options, interest rate cap/ floor pricing and interest rate collar pricing, etc.).  Introduction to 'Option Greeks'. Measuring different dimensions of risk in an option position, and illustrations with the help of a 'Black-Scholes' spreadsheet. Delta Hedging in practice.

Operational Aspects of an Option Deal: Key operations specific to options (such as - type of deal, settlement date, etc.). 

 

Course Fee: ₹ 5,899 (₹ 4,999 + ₹ 900 GST)

 

Course Duration: 7.07 hours

 

Target Audience:

New Investors                                

Trader                                     

Brokers and Sub brokers                 

Financial Service Professionals

Employees of Stock Brokers and Sub-Brokers

Students

Teachers

Employees of BPO/IT Companies

Investors

Anybody having interest in the Stock market operations

 

 

Format/Delivery  Method:

Self Study/ Online Examination

 

 

Assessment:

The Assessment will be Online and will not be scored. A participation certificate would be provided. No Cut off marks 

 

Project Work:

NA

 

Certification:

Certificate of Participation