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2. Technical Analysis

14 Chapters

4. Commodities

21 Chapters

5. Currencies

14 Chapters

6. Options

5 Chapters
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Options

Module Overview

In this module, we will talk in detail about a very versatile derivative instrument called options. We will start right from the basic terminologies, such as defining what an option is, type of options, option moneyness and price etc. Once the basics are clear, we shall then proceed to more complex matters, such as Option Greeks and Strategies. The objective of this module is to familiarise the reader with the intricacies of options, so that one can understand how to successfully use these versatile instruments.

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Chapters

1. Introduction to Options

8 Lessons

In this chapter, we will introduce the basis elements of an Option. We will cover things such as what is meant by an option, what are the two types of options, what is meant by strike price, option price, expiration date, etc. The objective of this chapter is to familiarize the reader with the basics of options.

2. Option Price and Option Moneyness

5 Lessons

In this chapter, we shall study some crucial concepts that pertain to options. These include the two elements of option price (intrinsic value and time value) and moneyness of an Option. We will also cover how to calculate the breakeven point of an option, how to calculate the profit/loss potential of an option and discuss about the option payoff charts. We will conclude this chapter by talking about the key terminologies that were covered over the course of this chapter.

3. Factors that impact Option Price

7 Lessons

Now that we have a good understanding about the basic elements of an Option, it is time to dig in a little deeper. In this chapter, we will talk about the seven factors that impact the price of an option. Gaining a good understand about these factors is the first step towards understanding how option prices move.

4. Introduction to Option Greeks

5 Lessons

Now that we have a strong understanding of the key elements of options, it is time to move on to a critical part of the Options module: Option Greeks. In this chapter, we will introduce each of the five Option Greeks. Post this chapter, we will devote an entire chapter to each of the five Greeks. Again, the objective of this brief chapter is to just introduce Option Greeks to the reader, and nothing more.

5. Delta

8 Lessons

In this chapter, we shall talk in detail about the first of the five Option Greeks: Delta. We shall start right with the basics of Delta and then proceed towards more complex areas such as how option moneyness impacts Delta, how time and volatility impact Delta etc. We will then conclude this chapter by talking about the derivative of Delta: Gamma.

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