Don't let the learning stop - take a look at our range of courses delivered through live virtual sessions which are complemented with on-demand digital content.

As a consequence of the current situation and in adherence with the wider international guidance, we have deferred all face-to-face courses indefinitely. We will be monitoring and updating on this as the situation dictates.

Commodity Options Part 3 - VIRTUAL DELIVERY

This virtual course is aimed at delegates who have completed Parts 1 and 2 of Commodity Options. The live sessions are led by experienced traders and trainers who engage to bring theory to life through real-world insight to the options markets. The aim of this program is to explore and apply the advanced level concepts and tools of the Commodity Options markets. We draw on markets that are representative for all delegates to ensure relevance to every situation. This is the third and final part of a series of three modules in the Commodity Options Series.

During these challenging times, all virtual courses are being offered at a discounted rate.
Enter code: C2020 on the booking form when checking out.

This virtual course is one of the ICE Education LIVE programs. We provide three phases to the course:
1. Pre-course: Access to the ICE Education learning platform for on-demand primer content.
2. Live Virtual Sessions: Trainer led live video sessions (as per the outline below). These are short focused sessions with practical activity and interaction throughout.
3. Post-course: On-demand content remains available and an optional live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.
All course payment must be received one day prior to the start date

Training Dates
2nd July 2020 Start Time - 09:00 London
10th September Start Time - 13:00 London - 08:00 North America
1st October Start Time - 09:00 London

Course Information

Price £850 + VAT
Duration 1 day
Location Virtual
Available Dates
Sep 10 2020  Register Now
Oct 01 2020  Register Now

Who Should Attend

  • Personnel from the commodity market, trading companies and other individuals who wish to gain an understanding of commodity options and their uses
  • Risk management and financial departments of commodity producer and commodity trading companies
  • Commodity supply and distribution companies
  • Major commodity consuming businesses
  • Trading companies, banks, brokers, government, regulators and associated organisations

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

o 0900 - 0920: Technology check in to ensure all technology working and that all delegates have required access.

o 0930 - 1015: Session 1 - Key principles & volatility

  • Introduction
  • Course structure and agenda
  • Options - key principles

o Intrinsic value & time value - put-call parity

o Option pricing, relationships & modelling

o Option strategy - the trading decision

o Option prices & delta

  • Volatility

o Key types

o Uses

  • Q&A session

o 1030 - 1115: Session 2 - Implied volatility ranges & interpretation of volatility

  • Implied volatility ranges

o Across asset classes

o In relevant contracts

  • Interpretation of implied volatility numbers

o Probability theory

o Translated to markets & metrics

  • Annual basis
  • Other periods (month, week, etc.)
  • Q&A session
  • Exercises

o 1130 - 1215: Session 3 - Volatility skew

  • Skew in mathematics - probability theory
  • Market psychology and the reasons for skew
  • Volatility skew in practice

o Across different asset classes (positive/negative/smile)

o In specific relevant contracts

o Ways to monitor skew

  • ICE Option Analytics- skew in practice
  • Empirical observations
  • Q&A session
  • Exercises

o 1315 - 1400: Session 4 - Option market-making & gamma

  • Market-makers in real-world option markets

o Role of market-makers

o Standard practices of market-makers:

  • Delta hedging & neutrality
  • Trading volatility
  • How market volatility moves
  • The primary Greeks revisited
  • Gamma - the key secondary Greek

o Definition

o Examples

o Trading long gamma

o Trading short gamma- being whip-sawed

o Gamma rent

  • Q&A session
  • Exercises

o 1415 - 1500: Session 5 - Advanced option strategy

  • The option trading decision revisited
  • How to optimise potential returns
  • Long premium strategies

o Long vertical spreads

o Variations on verticals

  • Selling options safely

o Short straddle vs iron fly

o Short strangle vs iron condor

  • Further strategies (in brief)

o Collars (fences) revisited

o Horizontal spreads

  • Q&A session
  • Exercises

o 1515 - 1600: Session 6 - Option spreads & combinations

  • OTC exotic structures

o Accumulators

  • Option portfolio risk management

o Heuristic rules

o Portfolio Greeks

o What-if reports

  • Q&A on this session
  • Summary/round-up of day
  • Exposition of digital post-course resources
  • Information on post-course clinic
  • "Final Q&A