This course provides an introduction to options contracts and their key characteristics. You will learn what defines an options contract, and the key terminology associated with options. You will find out what it means to be ‘long’ options and ‘short’ options. We will explore the factors that affect the value of an options contract, and how the price of an options contract varies as they change. You will learn about different types of options that are traded, and the main reasons why people use options contracts.

There are no pre-requisites for this course and no advance preparation is required.

Programme Level:  Basic

Course Code:  BOO

Industry:  Trading, Derivatives, Hedging and Risk Management

Course Length:  2 hours

CPE Credits:  2 self-study CPE credits awarded for this course

You will learn to:

• Identify the difference between the two main types of options, calls and puts
• Recognize some key options terms and their meanings
• Recognize the meaning of being ‘long’ and ‘short’ options
• Describe the market position created when calls and puts are bought and sold
• Identify the key variables that impact an option’s value
• Recognize the main ‘Greeks’ and how they affect the option’s price and behavior
• Distinguish between the main types of options that are traded
• Recognize the advantages of options in hedging and for-profit trading

Practice exercises and self-assessment quizzes are included to help reinforce key topics introduced throughout the course.

A comprehensive final test will be given at the end of the course.