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Last chance to enrol for Options Trading Workshops

Mon 21 Apr 2008

Enrol now for the Options Trading Workshops - Melbourne, Sydney and Brisbane

Calendar 2009 option open interest is the equivalent of 69% of the underlying futures open interest which highlights the importance of understanding options. d-cyphaTrade is running level 2 Options Trading Workshops that focus 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 drawing heavily on theoretical options-related mathematics.

WHEN:

  • Tuesday, 6 May 2008 in Melbourne
  • Friday, 9th May 2008 in Sydney
  • Tuesday, 13th May 2008 in Brisbane

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

DURATION: 9am – 3pm (6 hours)

FEES: A$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 contact a member of the d-cyphaTrade Team on 1800 330 101 to reserve your place.
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 further details.


Best regards,

The d-cyphaTrade Team

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