Overview

Understanding Options Overview

This Understanding Options course provides an overview of options terminology and how options can be used effectively. We explore moneyness, intrinsic vs. extrinsic value, and also show simple hedging strategies. We also look at pay off diagrams and how we can use an option pricing model to determine effective strategies.


Who Should Take This Course?

This Understanding Options course is great for anyone looking to enhance their knowledge of derivatives and options. These tools can be used in careers involving trading and managing the exposure of a portfolio.

Understanding Options Learning Objectives

  • Define the basic terminology surrounding options such as calls vs. puts, and obligations vs. rights
  • Understand option pay-off profiles and compare them with futures and forwards
  • Interpret time value and intrinsic value and identify the concept of put-call parity
  • Explain the moneyness of an option and evaluate how time and price affect the premium of an option
  • Compare options with simple future/forward hedges alongside examining common option hedges
  • Describe long call and long put hedges and summarize the concept of portfolio protection

Prerequisite Skills

Recommended skills to have before taking this course.

  • Basic Math
  • Critical thinking
Understanding Options
4.9

Level 3

1h 1min

100% online and self-paced

Field of Study: Specialized Knowledge

NASBA CPE Credits: 1.5

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This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Capital Markets & Securities Analyst (CMSA®) Certification

  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side

Financial Planning & Wealth Management Professional (FPWMP®) Certification

  • Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
  • Career Prep Financial Planner, Investment Advisor, Portfolio Manager

What Our Members Say

good experience
Basics well presented and explained

venugopal rajamanuri

awesome
I particularly liked the practical aspect of the course using the option strategy modeler.

Derick Twesigye

Amazing
Great Course to understand about Option Mechanics.

Manoj Kumar P

Good primer on options
Good overview of options and their valuation.

Sylvain DAVID

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message.
If you haven’t found your answer from our FAQ, please send us a message.
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