Course Summary
This course allows delegates to experience this fascinating and complex field first hand. Long thought a difficult topic, this course makes options easy! This full day workshop covers everything from premium valuation to advanced trading strategies on exchange traded options, specifically those related to energy commodities, including oil, gas and electricity. You will gain even more valuable insights through our unique trading simulation and comprehensive review at the end of the day.
8 CPE credits awarded for this course.
Our class sizes are limited to 20 delegates to ensure maximum individual attention.
Who Should Attend?
Class delegates include everyone from trade support staff all the way up to senior management — anyone who needs to learn the basics for the first time or sharpen their skills on futures terminology and trading. This programme deals with many different energy commodities, including oil, gas and electricity.
Prerequisites:
Princeton Energy Programme’s Fundamentals of Energy Futures or a thorough understanding of exchange traded futures contracts.
Pre-classroom Study:
As part of our blended learning package, this workshop has a specific web-based course which is recommended as pre-classroom study. Upon registering for the workshop delegates will receive details of how to access the web-based course. Access to the web-based course is included in the price of the classroom course. To optimize your classroom experience, it is recommended you take the appropriate online study as close to the classroom date as possible. The recommended pre-classroom study for this workshop is PrincetonLive.com’s Options Always Die.
Course Contents
- Characteristics and profit and loss profiles of calls and puts
- The ‘anatomy’ of an option
- Being an option ‘holder’ vs being an option ‘writer’
- Exercise and assignment
- The different styles of options – American and European
- Calculating intrinsic and extrinsic value
- Discuss the variables affecting the Black-Scholes options pricing model
- The importance of volatility – both historical and implied
- Using bear and bull fences
- The behavioral characteristics of premiums
- The ‘Wasting Asset Theory’
- The meaning of delta, gamma, vega and theta
- Included in the manual and covered if time permits: Characteristics of straddles with profit and loss profiles
