Trade on the Exchange Traded Options Markets
This unit covers the knowledge and skills required to determine the exposure and risk involved as part of the decision-making process in assessing opportunities and executing trades on the Exchange Traded Options Market
Topics covered in this unit will be:
- Introduction to the ETO Market – we will look at the background of the market, the advantages and disadvantages of options, and the role of the participants and market makers
- Elements of an Option – covers the elements which make up an option contract – exercise price, date, premium and the underlying products
- Option Styles – learn the difference between American and European style options
- Option Types – this topic will cover all of the aspects of Put and Call options – how to use them, how they relate to the underlying price and the application of trading them
- Factors affecting Options pricing – in this topic we look at different factors affecting option prices and the effect of the Greek formulas on the probability of exercise
- In, At and Out of the Money Options – learn the different risk profiles of these and how to adapt them to your trading style
- Single Options Strategies – learn the simple strategies of buying and selling Put and Call Options
- Combined Strategies – in this topic, we cover Buy and Writes, Spreads, Strangles and Straddle Strategies
- Using Exchange Traded Options for Income – covers the Ability to generate extra income from Selling Options
- Risk Management – how to protect your portfolios with Options, or simply protect a single stock position
- Execution – learn how to place option trades into the ASX Options system
- Technical analysis of charts in relation to short-term trading decisions
The unit culminates in practical exercises that demonstrate the different strategies available to speculate and risk manage using the Exchange Traded Options in the Australian market scene.
Upon successful completion of this unit, students should have the knowledge and skills to apply trading strategies in the Exchange Traded Options market.
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