Options - Part 5

Options - Part 5

Overview

Option traders deal in multiple options rather than a single position, which means they are required to manage portfolios and cope with various risks associated with these portfolios. Consequently, option traders need to be aware of multidimensional changes in the market.

This tutorial explains the role of an option market maker as opposed to a trader speculating on the market. The tutorial describes in detail how the initial exposure of an option trader is hedged and looks at ways of dynamically hedging market exposure over time. The tutorial also provides an overview of managing multiple exposures derived from the option portfolio.

Objective

On completion of this tutorial, you will be able to:
- Distinguish between the role of an option market maker and a trader speculating on the market
- Hedge the initial exposure of an option trade
- Recognize the ways in which an option trader is required to dynamically hedge market exposures over time
- Identify and manage the multiple exposures that are derived from an option portfolio

Content

Topic 1: Overview of Options Risk Management
Topic 2: Hedging the Initial Exposure
Topic 3: Managing the Portfolio
Topic 4: Option Management After the Initial Hedge

Details

Code
TEPDS17003501
Venue
ePlatform
Language
English
Level
Advanced
Hours
SFC:1.5, PWMA:1.5
Fees
All Member: HK$450
Non-Member: HK$675
Staff of Corporate Member: HK$450