Commodity Options Part 2

ZISHI

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CO₂ prevented 1.08 kg

Delivered on behalf of ICE, this virtual course is aimed at delegates who have completed Part 1 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 explore and apply the intermediate level concepts and tools of the Commodity Options markets. We draw on markets that are representative for all delegates to ensure relevance to every situation. This is the second part of a series of three modules in the Commodity Options Series.

Skills

Commodity Options

Learning Objectives

Understand the components of option pricing, including intrinsic and extrinsic value, put-call parity, and how options are valued in marked-to-market vs premium-paid environments.
Gain proficiency in applying the Black-Scholes pricing methodology, identifying how key variables—underlying price, time decay, interest rates, and volatility—affect option valuations.
Explore real-world option pricing practices, including the use of pricing models, interpreting implied volatility, and dynamically adjusting inputs to evaluate changing market conditions.
Develop a strong grasp of primary option sensitivities (Greeks), with a focus on delta—its mathematical basis, practical uses in price prediction and hedging—and an introduction to theta, vega, and rho.
Analyse and construct basic and advanced option strategies, including vertical spreads, straddles, and strangles, while applying risk management principles to manage exposure in real-world trading environments.

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