Course Code: 826

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Meyer Grumet

CPE Credits: 7

Prerequisite: No Prerequisite Required

This one-day course will define and examine the characteristics of equity and index options. Puts and calls will be explained and the course will analyze how they can be used to hedge positions in a portfolio of underlying securities. Industry terminology and practices will be reviewed as well as the rewards and risks associated with various option strategies.

The presentation will cover the pricing and valuation of options along with operational considerations such as margin requirements, trading and settlement.

This seminar would be helpful for those individuals who wish to start investing in options as well as those individuals whose responsibilities involve some exposure to options trading, particularly in operational areas that support the trading, settlement and servicing of equity options.

Topics for discussion include:

Concepts

•  Terminology
•  Rights and Obligations
•  Covered and Naked Options
•  Options Chain
  

Buying and Selling

•  Puts and Calls
•  Profit and Loss Scenarios
•  Risk Profiles
  

Valuation and Pricing

• In the Money and Out of the Money
• Time Value
• "Greeks"
  

Hedging Strategies

•  Covered Calls
•  Married Puts
•  Collars
  

Operations and Settlement Processing

•  Segregation of Underlying Shares
•  Exercise and Expiration
•  American and European-style Options
•  Statementing

Upon completion of this course, participants will have a comprehensive overview of stock and index options trading and settlement and will be familiar with the risks and rewards associated with options investments.