Options allow one to trade both the direction (‘delta’ views) of an underlying (as a proxy for a spot position) and / or its volatility. Exactly what does it mean to ‘trade volatility’? How do you do this? Variance swaps are one way. How do they work?
None is specifically assumed but a basic understanding of options and how they are hedged will help one take more away from the class.
• What is volatility?
• Calculating volatility
• Interpreting volatility
• Observations about volatility
• Sources of volatility
• Variance swaps (definition, vega notional, marking-to-market, uses, options on variance swaps, conditional variance swaps)
• Other ways to trade vol
WHO SHOULD TAKE THIS COURSE?
Anyone wanting to know more about ‘vol trading’
These courses are included in this module
OPTION PRICING 1
Understanding options more deeply can be helped by understanding the drivers of their valuation and the realisation of the relationships that exists between the puts and calls. Additionally, when looking at theoretical values, we can observe different driver to ‘forward value’ and ‘uncertainty value’LEARN MORE
STRUCTURED PRODUCTS BASICS
Understand why investors may choose to buy various types of structured products. Understand how a bank provides products with structured payoffs.GET STARTED
In this class we will examine each of the common Greeks in detail and describe hot is is used to manage and hedge option risk.LEARN MORE
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