Udemy
    •  
    •  
    •  
    •  
    •  
    •  
    •  
    •  
Turn what you know into an opportunity and reach millions around the world.
Learn More
Your cart is empty.
Keep shopping
Options - Mechanism and Underlying Theory
Rating: 4.9 out of 5(8 ratings)
92 students

Options - Mechanism and Underlying Theory

Options Trading Strategies and Pricing
Created byEarth Team
Last updated 12/2022
English
English [Auto],

What you'll learn

  • Learn Option Pricing Theory, Binomial Model and Black Scholes Pricing Model
  • Learn the Option Greek Dynamics and Risk Profile.
  • Learn to create basic option spreads conducive to market environment.
  • Trade Options basis the greeks mechanism.

Course content

2 sections • 13 lectures • 3h 18m total length

  • Options Defined14:34

    Define options, explore their risk profiles, spreads, and hedging strategies, and learn option pricing through Wiener process, Ito's lemma, Black-Scholes-Merton and binomial models, plus Greeks.

  • Option Greeks
  • Moneyness of an Option11:22

    Explain moneyness by intrinsic and extrinsic value, showing how spot and strike prices determine the time value and money status (in, at, out) for calls and puts.

  • Option Moneyness
  • Options Risk Profile13:23

    Learn how different risk factors like Underlying asset price, volatility and time to expiry influence the Option Premium and how to place the  trades which are conducive to market environment.

  • Option Dynamics
  • Put-Call Parity17:36

    Explore put-call parity, showing how a call plus bond equals a put plus stock for the same maturity and strike, revealing no-arbitrage and forward pricing.

  • Option Spreads16:08
  • Spreads
  • Straddles6:56

    Use a straddle by buying a call and a put at the same strike to profit from a big move in either direction, with negative theta and positive vega.

Requirements

  • Basic high school calculus

Description

Course outlines the basics of options pricing mechanism. It outlays the framework for building the sophisticated option strategies by laying the foundation of vanilla spreads strategies. It explains the behaviour of various option greeks influencing the premium of an option. Course also elaborates on impact of various risk factors like underlying volatility, time to expiry and money-ness of an option that must be considered while deploying these spreads which makes the overall strategy more conducive to the prevailing market conditions. This course further talks about the underlying mathematical concepts behind famous Black-Scholes-Merton formalism and Binomial Model used for pricing these range of derivatives. Course takes a  mix of qualitative and quantitative approach such that rigorous and important  mathematical concepts doesn't get excluded and at the same time subject remains easy to grasp.


Course consists of  11 lectures spread across two sections:-

1. Options Defined

2. Money-ness of an Option

3. Options Risk Profile

4. Option Spreads

5. Straddles

6. Weiner Process

7. Process for Stock Price

8. Ito's Lemma

9. Lognormal Property of Stock Returns

10. Black-Scholes-Merton Model

11. Binomial Model


Earth Team: This course is designed by the Quants and Educational experts who have more than decade of experience in providing training to wide spectrum of professionals.  Team has worked with various hedge funds, investment banks and elite academic financial institutions to bring a quality financial education to all the potential aspirers. 


------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Who this course is for:

  • Beginners who want to learn the math behind the options as well trade various spread combinations.

Report abuse