This is a one-day course for which some existing knowledge of options is desirable (e.g. an understanding of intrinsic/time value, delta, volatility, etc.). Real-world examples and real-world trading tools (e.g. option pricing model) are used throughout the course. This course is designed to be flexible in order that delegates individual issues/scenarios may be addressed. Option strategies are explored at appropriate points throughout the session.
Who Should Attend?
- Personnel from the commodity market, trading companies and other individuals who wish to gain an understanding of commodity options and their uses
- Risk management and financial departments of commodity producer and commodity trading companies
- Commodity supply and distribution companies
- Major commodity consuming businesses
- Trading companies, banks, brokers, government, regulators and associated organisations
Introductory Q&A session to establish delegates existing option knowledge
- Fundamentals of volatility; definitions, types, etc.
- Calculating implied volatility in practice
- Mathematical interpretation of volatility
- Volatility skew analysis
- Trading volatility
- Volatility in practice
Managing Option Risk:
- Macro level option risk management; generalised rules
- Q&A session