Derivatives are the financial contracts or instruments, which derive their value from underlying asset. World over a considerable portion of trading in financial assets takes place in the form of derivatives and options trading. Hence, it is imperative to develop domain knowledge expertise in quantitative and qualitative trading skills so as to trade or invest profitably. Also, increasing volatility across global markets has necessitated a multidimensional approach for understanding the importance of derivative trading. Given the current market scenario and dynamism, Derivatives Trading has attracted attention more than ever before. The concepts are multi-fold and are applicable across all financial markets: equities, fixed income, currencies-domestic or global.
The programme aims to enhance the competitiveness of executives of all levels in the financial industry. It is designed to assist professionals to take on a leadership role in their position individually and collectively, while improving their knowledge. The program will focus on delivering a unique mix of theory and the practical applications of options trading in the areas of straddle, strangle, butterfly and Iron condor. It will also focus on using the Greeks to formulate the options trading strategies. Popular and profitable strategies like Gamma Scalping, Options shorting and handling related risks will be discussed in great detail along with live examples from the market. Arbitrage strategies and opportunities pertaining to call-call arbitrage, skew arbitrage and volatility arbitrage will also be covered in detail. Idea will be to help the participants get good know how on what kind of arbitrage they can spot across various options and how to leverage the opportunity to maximize the profitability. Discussion pertaining to risk management, like continuous delta hedging, vega hedging etc. will also be a value add. All the trading strategies will be demonstrated using Excel examples - both in Nifty options and USDINR option segment.
Day One & Two:
• Trading strategies using options
• Determinants of option price and the Black-Scholes model
• Visualizing option exposure and Greeks
• Hedging an options book: Greeks for portfolio
• Volatility smile and associated trading strategies
• Hedging volatility risk and the Vanna-Volga method
• Practical training sessions based on the learning of Day One & Two
• Corporate Executives
• Financial Intermediaries
• Fund Managers
• Media & Journalist