Option Trading - Advanced

Overview

Most of the people who trade choices begin basically purchasing calls and puts so as to use a market timing choice, or maybe composing canvassed brings with an end goal to create pay. Strikingly, the more drawn out a trader remains in the alternative trading amusement, the almost certain the person in question is to relocate far from these two most basic methodologies and to dig into systems that offer novel chances.

1. Options

A. Derivative Types
B. Continuous Compounding
C. Option Valuation
D. Option Pricing Band
i. Upper Bound: Call  Option
ii. Upper Bound: Put Option
iii. Lower Bound: Call  Option
iv. Lower Bound: Put  Option
E. Put-Call Parity: European Options
i. Position A undervalued
ii. Position B Undervalued
F. Put-Call Parity: American Options
G. Dividends

2. Quantitative Concepts

A. Normal Distribution
B. Share Prices – Lognormal Distribution
C. Linkages that arise from the Distribution D. Volatility (s)

3. Binomial Option Pricing Model

A. Single Period Binomial
B. Multiple Period Binomial
C. European Put Option
D. Binomial Model for American Options
E. Role of Volatility in ‘u’ and ‘d’

4. Black-Scholes Option Pricing Model

A. European Call Option
B. European Put Option
C. Dividends
D. American Options

5. Option Greeks

 Delta

1. European Call on non-dividend paying stock
2. European Put on non-dividend paying stock
3. European Call on asset paying a yield of q
4. European Put on asset paying a yield of q

 Gamma

1. European Call / Put on non-dividend paying stock
2. European Call / Put on asset paying a yield of q

 Theta

1. European Call on non-dividend paying stock
2. European Put on non-dividend paying stock
3. European Call on asset paying yield of q.
4. European Put on asset paying yield of q

 Vega

1. European Call / Put on non-dividend paying stock
2. European Call / Put on asset paying yield of q

 Rho

1. European Call on non-dividend paying stock 2. European Put on non-dividend paying stock

6. Volatility

 Historical Volatility (s)
 ARCH(m) Model
 Exponentially Weighted Moving Average (EWMA)
 GARCH Model
 Implied Volatility

7. Basic Option & Stock Positions

A. Pay-off Matrix for Basic Option Positions
 Long Call  Short Call
 Long Put
 Short Put
B. Pay-off Matrix for Position in the Share
 Long Stock
 Short Stock
C. Assumptions
D. A Few Option Contract Intricacies

8. Option Trading Strategies

A. The Strategies
1. Single Option, Single Stock
i. Protective Put

ii. Covered Put
iii. Covered Call
iv. Protective Call
2. Multiple Options of Same Type
i. Bull Spread
ii. Bear Spread
iii. Butterfly Spread
iv. Calendar Spread
v. Diagonal Spread
3. Multiple Options of Different Types
i. Straddle
ii. Strangle
iii. Collar
v. Range Forward - Long
vi. Range Forward – Short
vii. Box Spread
viii. Condor
B. Option Chain
C. Contract Fundamentals
D. Option Trading Intricacies
1. Choice of Strike Price
2. Choice of Expiry
3. Roll Over and Covered Calls

9. Exotic Options

A. Asian Option
B. Bermudan Option
C. Compound Option

D. Binary Option
E. Barrier Option
F. Look back Option
G. Shout Option
H. Chooser Option

10. Market Indicators

A. Put-Call Ratio
B. Open Interest
C. Roll-over
D. Volatility

Duration of the Course:

1 Month + Live trading ( Excluding Doubt Classes )

Why not try before you buy?

Is it for me?

It’s designed to help Students Day traders, Investors , Sub-brokers, stock Brokers, Relationship  Managers, Traders, Consultants etc

Is there an exam?

At the end of the training is a NISM Series VIII Schedule optional Exam which will seek to create a knowledge benchmark in case you want to be associated with any recognized stock exchange.

PROGRAMS

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