Advanced Derivatives Market Strategies Course (ADMS)

Topics covered in this chapter are:

• Characteristics of Interest Rate Instruments
• Deposits and Loans
• Securities
• The Term Structure of Interest Rates

Topics covered in this chapter are:

• What Is the Foreign Exchange Market?
• Exchange Rate Quotations
• Determinants of Foreign Exchange Rates
• Spot and Forward Markets
• Structure of a Foreign Exchange Operation

Topics covered in this chapter are:

• History of Crude Oil
• Structure of the Oil Industry
• Crude Oil Trading
• Major Participants in Crude Oil Risk Management
• Oil Market Pricing
• Forward Pricing
• Crude Oil Investment Vehicles

Topics covered in this chapter are:

• A Primer on Natural Gas
• History and Regulation of the Natural Gas Industry
• Structure of the Natural Gas Industry
• Uses of Natural Gas
• Trading in Natural Gas
• Natural Gas Pricing
• Natural Gas Investment Vehicles

Topics covered in this chapter are:

• History of Gold
• Structure and Size of the Gold Industry
• Sources of Gold Demand
• Sources of Gold Supply
• The Case for Gold as an Investment
• Spot Gold Market Pricing
• Forward Gold Market Pricing
• Gold Investment Vehicles
• Precious Metals Mining Company Analysis

Topics covered in this chapter are:

• The Wheat and Corn Industries
• Overview of the Wheat and Corn Markets
• Price Discovery in the Wheat and Corn Markets
• Investment Vehicles
• Appendix: Analysis of the Wheat Market

Topics covered in this chapter are:

• The Pricing of Forward-Based Commodity Contracts
• Forward Pricing in the Energy Sector
• Forward Gold Market Pricing
• Agricultural Forward Market Pricing
• The Pricing of Forward-Based Interest Rate Contracts
• The Pricing of Forward-Based Equity Contracts

Topics covered in this chapter are:

• Price Versus Value
• Intrinsic Value
• Time Value
• Factors that Affect the Value of an Option
• Option Pricing Models
• Volatility

Topics covered in this chapter are:

• What Are Option Sensitivities?
• Delta
• Gamma
• Vega
• Theta
• Rho
• The Interrelationship of the Sensitivities
• Calculating Portfolio Sensitivities

Topics covered in this chapter are:

• What is an Option Spread?
• Bull Call Spread
• Bear Call Spread
• Bear Put Spread
• Bull Put Spread

Topics covered in this chapter are:

• Overview of Volatility Strategies
• Long Straddle
• Long Combination (Strangle)
• Short Straddle
• Short Combination
• Long Butterfly
• Short Butterfly

Topics covered in this chapter are:

• Call Backspread
• Put Backspread
• Ratio Call Spreads
• Ratio Put Spreads
• Time Spreads

Topics covered in this chapter are:

• Protective Puts
• Married Puts
• Protective Calls
• Covered Calls as a Hedge
• Collars

Topics covered in this chapter are:

• Naked Option Writing
• Covered Call Writing

Topics covered in this chapter are:

• Option Patterns versus Underlying Stock Price Patterns
• When to Implement an Option Strategy
• Reversal Patterns
• Continuation Patterns
• Sideways Trading Markets
• Options as Market Indicators

Topics covered in this chapter are:

• Benefits of Spreads
• Types of Spreads
• Risks of Spread Trading

Topics covered in this chapter are:

• Supply and Demand Analysis
• Types of Fundamental Analysis
• How Government Programs and International Agreements CanAffectPrices
• Major Limitations in Fundamental Analysis

Topics covered in this chapter are:

• Sentiment Indicators
• Volume and Open Interest
• Seasonality
• Combining Technical and Fundamentals
• Trading Systems and Risk Management
• A Simple Trading Plan

Topics covered in this chapter are:

• Identifying Equity Risk
• Managing the Risk of a Single Stock Using Equity Options
• Managing the Risk of an Equity Portfolio Using Stock IndexFutures
• Managing Equity Risk Using Equity Swaps
• Managing the Risk of Bought Deal Transactions

Topics covered in this chapter are:

• Identifying Interest Rate Risk
• Measuring Interest Rate Risk
• Managing the Risk of Future Borrowing Costs
• Managing the Risk of Current Borrowing Costs
• Managing the Risk of Bonds with Bond Futures Contracts

Topics covered in this chapter are:

• Which Entities Are Exposed to Foreign Exchange Risk?
• Measuring Foreign Exchange Risk
• Measuring the Risk of Foreign Securities
• Managing Translation and Transaction Risk
• Managing the Currency Risk of Foreign Securities and Portfolios

Topics covered in this chapter are:

• Identifying Commodity Price Risk
• Hedging Energy Price Risk
• Hedging Energy Price Risk Using Exchange-Traded Derivatives
• Hedging Energy Price Risk Using OTC Derivatives
• Hedging Metal Price Risk
• Hedging Agricultural Price Risk

Topics covered in this chapter are:

• Principal-Protected Notes (PPNs) – What Are They?
• PPN Structures and the Use of Derivatives
• CPPI and Zero-Coupon Bond Plus Call Option Structures— Key Differences

Topics covered in this chapter are:

• Commodity ETFs
• Swap-Based ETFs and the Synthetic Replication ofIndexes
• Leveraged and Inverse ETFs