CFA Program
FRM
Financial Modeling
Equity Research

DERIVATIVE STRATEGIES

Purpose :
With financial markets becoming more mature and efficient, risk free return has become a history. As markets become more sophisticated one has to take ‘risk’ to earn a ‘return’. Hence, it is not only important to understand risk but also to measure and quantify the same. Options provide a huge opportunity to manage risk - both directional and non-directional. Options are normally not traded for direction but to trade time, volatility and 'space'. These three can be captured in different strategies in an optimal manner. As directional trading is risky, focus is going to be on the above mentioned aspects.
Majority of the volume in the derivative segment today is in the options market and is likely to grow significantly. There will be a growing demand for this skill set due to the following reasons:
  • More complicated financial products to be launched in India
  • Cross listing arrangement with other exchanges
  • Options are also being introduced on commodity and currencies
  • Introduction of DMA and Algo trading
  • Possible inclusion of market makers in the Indian markets
  • Larger number of stocks to be covered in derivative markets
There are 2 levels of training :
Basic module :Will provide a very strong foundation in the option theory.
Intermediate module :Introduction to more sophisticated concepts in option pricing, greeks, volatility and strategies
A person can also pursue Professional Options Trading Course if interested in a full time career as a trader. The students are provided a real time market experience on software - with this practical approach of the training the students will be able to get an easier entry into the industry.
Who will benefit from this training?
This training is meant for a person looking to get into Proprietary Trading, Sales Trading, Portfolio Management, Treasury Management, Risk Management and Hedging, Research and Trading etc.
Assessment :
  • In-Class Assessment
  • Group Discussion
  • Objective Exam
The aim of the above mentioned training is :
  • To provide 'advanced instruction and knowledge'
  • To go beyond the conventional theory
  • To involve students in decision making
  • To make students industry ready
Career opportunities :
  • Brokerage House
  • Institutional Research
  • Institutional Sales and Tradingt
  • Risk Management
  • Corporate Treasuries
  • Proprietary Trading Desks
  • Mutual Funds

This is the best in class training available in the country today and has already been successfully given to markets participants as Arbitragers, Wealth Managers and Individual Investors.
Basic option trading module :
The purpose of this training is to familiarize the participants with the basic fundamentals of the Options. The participants will learn the subject from the very basic and do not require any prior knowledge of the same and will get a solid foundation in the derivatives domain. The method of teaching will be interactive which is going to be a different experience for the students. After the course, students will be able to understand the basics of options which will help them in better understanding of the options market.
Contents
  • Introduction
  • Types of Options
  • Elements of Options
  • Option Value
  • Moneyness of Options
  • Options Matrix
  • Determinants of Options Valu
  • Payoffs
Participants will be introduced to options analysis software for understanding payoff and risk parameters.
Intermediate options trading module:
This is the second level of training - for the students who have successfully completed the Level 1 module and have got a fair understanding of the fundamentals of the options. The training will re emphasize the concepts learnt in the basic module and will introduce students to components of Option Pricing and Greeks. Special emphasis is also given to Volatility. After the course the students will be able to understand the behavior of options and device strategies and understand the implication of the strategies.
Contents
  • Determinants of Options Value
  • Revisiting Basic Strategies and Payoff
  • Options Calculator
  • Volatility and its Types
  • Implied Volatility and Implications
  • Demystifying Delta
  • The Other Greeks: Gamma Vega Theta
  • Strategies
    1. Portfolio Based strategies
    2. Directional Trades: Introduction to Spreading
    3. Introduction to Non-Directional/Volatility based trades
Participants will be put to rigorous simulation and basic volatility modeling, and will have to face real time market situations on software.
 
 
Name :  
Mobile :  
Email Id :
City :  
Query :