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Options Trading Workshop, Sydney

Tue 29 Jul 2008

Enrol in Options Trading Workshop, Sydney

d-cyphaTrade have introduced a level 2 Options Trading Workshop focusing on option hedging strategies for energy companies and option volatility trading techniques for financial trading specialists. The Options Trading Workshop will provide practical electricity option trading insights rather than focusing on theoretical options-related mathematics.

WHEN: Thursday, 4 September

WHERE: Sydney

FACILITATOR: Dean Price (General Manager of d-cyphaTrade) who was a professional options market maker on the "open outcry" trading floor of the SFE for over 8 years before commencing electricity trading in 1999.

DURATION: 9am – 3pm (6hrs)

FEES: AUD $1,000 (+ gst) per person

WORKSHOP OUTLINE:

A. Introduction to Electricity Options

  • 1. The Basics
    • Electricity futures
    • Electricity options
    • The Option Greeks (dynamic option valuation): Delta, Vega, Gamma, Theta, Rho and Charm

B. Putting it all together: A day in the life of a professional option trader

  • 2. Basic Hedging Strategies – Directional strategies
    • Using Options to hedge futures prices:
    • Retailers and Generators
    • Futures price increases
    • Futures price decreases
    • Range bound Futures prices
  • 3. Basic Volatility Trading Strategies
    • Understanding and “trading” Volatility
    • Implied Volatility
    • Historical Volatility: definition and measurement
  • 4. Skew Trading - Deal Execution and Strategy
    • What is a volatility skew?
    • What creates a skew?
    • MTM treatment of skews
    • Skew Trading Objectives
    • Trading into a skew position
    • Trading out of a skew position
  • 5. Volatility Trading Objectives when:
    • Futures prices are expected to be volatile
    • Futures prices are expected to be static
    • Futures prices are expected to be range bound
  • 6. Managing the Option Expiry
    • The effect on and relevance of Option Greeks
    • Calculating the expected futures delivery
    • When futures prices shift through strikes
    • “Pin” risk
    • The decision to exercise, or not
  • 7. Mixing OTC and exchange traded positions
    • Advantages and disadvantages of SFE Options
    • Advantages and disadvantages of OTC options
    • Delta hedging Exchange options with OTC swaps

COURSE MATERIAL: Attendees will receive course material, including workshop notes, training exercises and worked examples. Upon completion attendees will be presented with a certificate.

HOW TO ENROL

Please note there are limited places available for this scheduled workshop. To secure a place please contact a member of the d-cyphaTrade Team on 1800 330 101.

If you're interested in holding an in-house Options Trading Workshop for 8 or more people please contact d-cyphaTrade on 1800 330 101 to discuss any specific topic requirements and for further details.