To provide practical exposure to the world of Options Trading. Options are considered little more complex than Futures trading. We, in this course are trying to make it simple for the student/traders so that he/she can trade them confidently in the markets.
Session#1: Introduction to Future & Options & Bhav Copy Analysis + Open Interest Analysis
- What is derivative?
- Types and Users of derivative
- Difference b/w futures and forwards
- What is an Option?
- Understanding of Option contract specification in
- Pay off formula
- Moneyness of Option
- Intrinsic value and Time value
- What is Bhav Copy and what are its Usage?
- What is Open Interest?
- How to identify bullish or bearish view with OI?
- How to use Open Interest in case of Options?
- Some recent examples on Open Interest
Session#2: Factors affecting Option Prices+Pay off Discussion and Put call Parity & Trading Strategy
- Factors affecting Option Prices
- Revisiting the Pay off formula with intense exercise
- What is an Arbitrage?
- Example of Arbitrage with current market scenario
- Right Issue Introduction to Put-Call Parity Formula
- Derivation of Synthetic Positions from Put-Call Parity Formula
- Protective Put strategy
- Covered Call strategy
- Bull Spread
- Bear Spread
- Break even analysis
- Understanding the timing
- Tracking live data
Session#3: Volatility+Volatility Skew and Smile
- What is volatility?
- Bear Spread
- Historical Vs.Implied Volatility
- Introduction to Option calculator
- What is volatility skew and smile?
- Break even analysis Calculating Volatility skew for Nifty Option
- Also Checking USDINR option through volatility
Session#4: Revision+Complex Strategy & Greeks
- Let's see where we stand
- Daily OI analysis
- Making Live Market strategy
- Introduction to Option calculatorComplex strategy -Iron butterfly
- Iron Condor
- Broken wing Butterfly
- Calendar spreads
- What are greeks?
- Why are they Used?
- Delta - characteristics and relationships
- Vega - characteristics and relationships
- Theta - characteristics and relationships
- Rho - characteristics and relationships
- Gamma - characteristics and relationships
- How to use them - trading and hedging
- Gamma scalping
- Trading Infrastructure set up
- Making your own Excel for live strategy and PnL
- Current Market Strategy Discussion
- Trading Timeframe Discussion
- Margin and Money management-Why its necessary?
- Resources on Internet
PS: An additional session can also be held according to the requirements of the students.