Options I - Fundamentals of Energy Options

Options I - Fundamentals of Energy Options

Course Summary
This course allows delegates to experience this fascinating and complex field first hand. Long thought as a difficult topic, options are broken down so they are fully understood. This full day workshop covers everything from premium valuation to advanced trading strategies on exchange traded options, specifically those related to energy commodities including oil, gas and electricity. You will gain even more valuable insights through our unique trading simulation and comprehensive review at the end of the day.
8CPE creditsawarded for this course .

Requirements:
Princeton Energy Programme's Fundamentals of Energy Futures or a thorough understanding of exchange traded futures contracts.
Pre-classroom Study
This course has an accompanying web-based pre-study module component (FOEO-P) . Upon registering for the workshop, delegates will receive details on how to access this which is already included in the price of the instructor-led course. To optimize your classroom experience, it is recommended you complete the pre-study as close as possible to your start date to fully benefit.
Course content:

• Characteristics and profit and loss profiles of calls and puts
  
• The 'anatomy' of an option
  
• Being an option 'holder' vs being an option 'writer'
  
• Exercise and assignment
  
• The different styles of options - American and European
  
• Calculating intrinsic and extrinsic value
  
• Discuss the variables affecting the Black-Scholes options pricing model
  
• The importance of volatility - both historical and implied
  
• Using bear and bull fences
  
• The behavioral characteristics of premiums
  
• The 'Wasting Asset Theory'
  
• The meaning of delta, gamma, vega and theta
  
• Included in the manual and covered if time permits: Characteristics of straddles with profit and loss profiles