The "Essentials of Options" training course delves into the complex world of options, a type of conditional derivative product. The course illuminates the complexity of options, which have payoffs dependent on scenarios related to the price evolution of various underlying assets like stocks, rates, commodities, and more. Participants will explore the multifaceted strategies and applications of options, including risk hedging, speculation, and arbitrage.
Options, affected by several variables known as "the Greeks" - including time passage (theta), volatility (Vega), strike price, and interest rate (rho) - are unpacked for thorough comprehension. The training is tailored to equip both traders interested in common strategies like covered calls and protective puts, and institutional managers seeking advanced hedging techniques, with practical skills and insights.
I. Generalities about options
II. How options work
III. Option princing methods
IV. Vanilla options and traditional options strategies
V. Strategies combining multiple options
VI. Exotic options
VII. Hedging strategies for an equity portfolio and managing exchange rate risk with options