Commodity Options Part 1

ZISHI

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CO₂ prevented 1.08 kg

Delivered on behalf of ICE, this virtual course is aimed at delegates with little or no existing knowledge of commodity options. The live sessions are led by experienced traders and trainers who engage to bring theory to life through real-world insight to the options markets. The aim of this program is to provide you with the basic concepts and tools of the options markets. We draw on markets representative for all delegates to ensure relevance to every situation.

Skills

Commodity Options

Learning Objectives

Understand the fundamental concepts and terminology of commodity options, including option types (calls and puts), contract specifications, trading venues (ETO vs OTC), and pricing components.
Develop the ability to analyse and interpret option pricing data, including the relationships between option prices, European vs American style contracts, and the application of basic pricing models like Black-Scholes.
Gain practical skills in using options for hedging and risk management, including identifying natural long and short positions, constructing hedging strategies such as collars, and evaluating their effectiveness through case studies.
Evaluate the role of options in speculative trading strategies, understanding the risk-reward profiles of long and short positions, and applying decision trees and payoff charts to plan and assess trading approaches.
Apply theoretical knowledge to real-world scenarios through exercises and case studies, enabling participants to confidently navigate option trading screens, interpret market data, and make informed trading or hedging decisions.

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