Option Strategies for Trading and Investing

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Explore in this Option Strategies course the value objectives of various option strategies and how they can be understood by connecting them to the two value propositions of trading and investing.

  • Buy call
  • Protection
  • Call spread
  • Volatility smile
  • Kurtosis
  • Risk reversal
  • Sell put
  • Straddle
  • Condor
  • Volatility strategies
  • Protective put
  • Leverage
  • Breakeven management
  • Skew
  • Volatility term structure
  • Covered call
  • Risk premium
  • Strangle
  • Butterfly
  • Option greeks

Delivery options

  • Classroom session (half day)
  • Virtual classroom (series of 1 to 1.5-hour webinars)
  • In-house

Option 1: classroom

You attend alongside other market participants: £495

Option 2: virtual classroom

You attend alongside other market participants via an interactive online classroom: £395

Option 3: In-house

This course can be tailored specifically for your organisation and delivered at your offices, offering a cost effective solution for more than 5 employees.

  • You may have heard of interesting names related to option trades: cover write, protective put, vertical spread, calendar spread, straddle, strangle, butterfly and condor; what are they? Are they just gimmicks? Otherwise how are they useful? Is a trade for a buyer or seller? Even for a single plain vanilla option, there is the question of what strike and maturity to use; that is a question about strategy. This class helps you understand what these strategies are and how they are used, not as a bag of tricks but as a systematic way to implement value propositions
  • Learn in this class risk and payoff profiles of various option strategies
  • Learn in this class how to understand these strategies by relating them to value objectives such as leverage, protection or harvesting risk premium
  • Learn in this class the important metrics, such as breakeven, option greeks and the breakeven among the greeks, for measuring the effectiveness of a strategy
  • Learn in this class how volatility smile and volatility term structure affect the construction of option strategies
  • People who are looking for a comprehensive and insightful exposition of option strategies
  • People who have seen option strategies before but like to find a systematic way to understanding them
  • Financial market professionals such as portfolio managers, salespeople and traders who have been working with cash instruments and wish to include option strategies into their activities
  • Professionals in support functions such as operations, technology, risk and financial controls of financial institutions who work with option trades of their firms or clients
  • *Pre-requisite: Participants are expected to understand the basics of options, including options greeks

Our Option Strategies course covers;

  • Option purchase
    • Protection vs. leverage: protective put and call buying
    • Volatility vs. trend: the contrast of how options are priced and used
    • Breakeven vs. probability of success: choosing the strike
    • Call and put spreads for managing breakeven?
    • How volatility smile and term structure affect the construction of strategies: ratio spreads, risk reversals
    • Class discussion: pick a strategy
  • Option writing
    • Implied vs. actual volatility
    • Earning a risk premium: buy write and put writing
    • Straddles and strangles: for buyers or sellers?
    • Class exercise: what strategy would you trade
  • Strategies in trading
    • Option greeks
    • Breakeven of option greeks: delta vs. vega, delta vs. decay; identifying the value driver of the strategy
    • Beware of gamma
  • Volatility as an investment
    • Would you rather be a buyer or seller of volatility?
    • Towards an income strategy: butterfly and condor
    • Deep OTM put: exposure to the underlying or exposure to skew?
    • Pure volatility strategy: VIX and VIX linked instruments
  • This Option Strategies course recognizes that a holistic and systematic way to understand a wide variety of option strategies is to connect them to value propositions: to trade on superior information (alpha) or to invest and earn a risk premium (beta)
  • This class uses real life examples and historical graphs to illustrate the usages of these strategies
  • This Option Strategies course focuses on an informative and conceptual overview of a sophisticated subject and avoids going into unnecessary technical details in order to provide an enlightening experience for the participants
  • This Option Strategies course is presented by a former market practitioner who is also an experienced teacher

Kai Hing Lum

kaihing@metafe.co.uk

Financial Markets

Kai Hing is an expert financial markets educator.

Kai Hing held several roles during his 21-year tenure at UBS across audit, in which he focused on trading and derivative businesses; and a specialized team responsible for the structuring and risk assessment of complex trades and new businesses.

Equipped with both broad and detailed understanding of finance, Kai Hing then joined the renowned UBS Financial Markets Education team and took on global responsibility to manage programs, create content and teach courses to colleagues and clients on a wide range of topics on equities, fixed income, FX, derivatives, equity valuation, portfolio analysis, risk control frameworks and methodologies.

As an experienced presenter with energetic and enthusiastic presentation style, coupled with a deep understanding of the subjects from his practical experiences, Kai Hing constantly receives high praise from his audience.

Before his career in the financial industry, Kai Hing taught and did research in mathematics after obtaining his Ph.D. in mathematics from the University of Chicago.

Kai Hing leads on our Financial Markets offerings.

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