Introduction to OTC Options

This course gives an insight into the workings of the OTC options market. The course reviews the structural and pricing differences between exchange and OTC options and covers the application of OTC options for hedging and price risk management.

Course Information

Price £700 + VAT
Duration 1 day
Location London
Available Dates

Who Should Attend

  • Recommended for anyone, including junior traders and brokers, who would like to improve his/her knowledge and understanding of energy derivatives and their uses.
  • Trading, risk management and financial departments of energy companies
  • Support and operations people involved in the energy markets
  • Producers, consumers, suppliers and distributors of oil, gas and other energy products
  • Individuals working in trading companies, banks, brokers government, regulators and associated organisations.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Review of basic concepts

  • Basic concepts
  • The differences between exchange traded and OTC options
  • Flexibility of OTC options
  • Cost of the premium of an OTC option
  • Exercise and settlement of OTC options

Use in risk management

  • Floors
  • Ceilings
  • Zero cost collars
  • Refining margin options

Other OTC strategies

  • Participating swaps
  • Swaptions
  • Double-ups

OTC options in Electronic trading

  • Online trading with ICE

Workshops and exercises