_How to manage hundreds of options using 4 greeks
_Understanding skew & smile, risk reversal, etc.
_Incorporating option strategies into trading

_Story

Throughout the three seminar days teams of participants trade options and manage an options book. The most successful strategy wins.

_Learning for the real world

Learning how to systematically deconstruct and analyse any options strategy

• Constructing profit/loss profiles for basic options strategies, bull and bear spreads, butterfly, straddle, strangle and time spreads

Understanding which factors influence the options price and incorporate this quickly into trading

• Assumptions of the option pricing model and their implications, call/put parity and its consequences in trading

Spotting chances and risks in the options book using five ratios and managing them according to one‘s own view

• Risk measurement of options strategies using delta, gamma, vega (lambda), theta and epsilon
• Impact of risk ratios on flow trading, cost-effective management of the options book as a whole
• Implementation of volatility, market and interest rate expectations to achieve maximum leverage in the options book

Understanding the relevance of risk reversal, skew & smile effects and drawing consequences for one‘s trading strategies, risk measurement and valuation

• Gamma trading: optimum trading strategies for your market view, achieving a better relation between risk and return using roll-over strategies
• Trading rules for arbitrage strategies, risk reversals, volatility smile, dynamic hedging of the options book
• Internal limit systems to control options trading risks through focused risk management systems instead of by volume, risk measurement of skew effects, volatility curve risks

_Target group

• Treasurers and chief traders with responsibility for risk management
• Junior option traders
• Money market and FX traders
• Corporate bankers
• Bank managers from accounting, controlling and auditing departments with responsibility for derivative products