Hedging and Trading with Options. Training Sessions. Part 1: Part 2: Part 3: Introduction to Hedging with Options. Advanced Options Trading

Transcription

1 OPTIONS Hedging and Trading with Options Training Sessions Part 1: Introduction to Hedging with Options Part 2: Hedging and Trading with Options Part 3: Advanced Options Trading Headquarters: Informa Economics, Inc. 775 Ridge Lake Boulevard Suite 400 Memphis, TN USA Tel Fax April 11-13, 2005

2 Page 2 Part 1: Introduction to Hedging with Options (half-day session - Monday, April 11, 2005) Informa Economics, Inc. will offer its half-day program, Introduction to Hedging With Options, in advance of the special options programs, Hedging and Trading With Options and the expanded Advanced Options Trading. This introductory program will cover basic option definitions and trading considerations. The program is recommended for those who have little or no exposure to options and options trading or would like a refresher course prior to beginning the full-day session on Tuesday, April 12, When: Monday, April 11, 2005 Where: Informa Economics - Memphis Office 775 Ridge Lake Blvd. 4th Floor - Training Room Memphis, TN Time: 1:00 pm - 5:00 pm Conducted By: Rob Westmoreland, Exec.VP, Informa Economics Cost: $ Introduction Course (1/2 Day) Course Outline: 1:00 pm Option Terms and Definitions 2:00 pm Practical Trading Considerations 2:30 pm Break 3:00 pm Option Pricing Factors: - Intrinsic Value - Time Value - Volatility 4:00 pm Application Examples

3 Page 3 Part 2: Hedging and Trading With Options (full-day session - Tuesday, April 12, 2005) Informa Economics, Inc. is offering this special one-day program designed to instruct the intermediate user of option strategies. The program, Hedging and Trading With Options, will be held on Tuesday, April 12, 2005, at the Informa Economics office in Memphis, beginning at 8:30 am and ending at 5:00 pm. The course will concentrate on the practical application of options as a hedging tool. In addition to the basic fundamentals, discussion will focus on two major factors that influence option prices -- the price of underlying futures and volatility. This session s instructor will be Mr. James B. Bittman. A summary of his experience follows: Mr. Bittman is the author of Hedging and Trading with Agricultural Futures and Options (McGraw-Hill, July, 2001). He has been teaching courses at Informa Economics, Inc. (formerly Sparks Companies, Inc.) since After starting his business career in commercial banking, Mr. Bittman became an options market maker at The Chicago Board Options Exchange in Since then he has had experience at both The Chicago Board of Trade and The Chicago Board Options Exchange. Currently, Mr. Bittman is Senior Instructor at The Options Institute, the educational arm of the CBOE. In this capacity, he teaches courses worldwide for major exchanges, brokerage firms and money center banks on a variety of subjects involving futures and options: hedging, portfolio risk management, individual investing with stock options and market making. He also teaches at The Illinois Institute of Technology in the masters level Financial Markets and Trading Program. Mr. Bittman is also the author of Options for the Stock Investor (McGraw-Hill, 1996) and Trading Index Options (McGraw-Hill, 1998). Informa Economics is pleased to offer this course again to those interested in understanding options and option strategies on a fundamental level. The cost of this fullday program is $ per person and will be held in the Informa Economics office at 775 Ridge Lake Blvd., 4th Floor - Training Room, Memphis, Tennessee. Course instruction, materials and lunch will be provided each attendee.

4 Page 4 Hedging and Trading With Options Schedule (full-day session - Tuesday, April 12, 2005) 8:30-10:15 Basic Strategies and Option Fundamentals (How Options Work - the Basics) - A Review of Basic Option Profit and Loss Diagrams - Understanding The Trade-Offs: Options vs. Futures - Why Options Have Value 10:15-10:30 Break 10:30-12:00 no Understanding Option Price Behavior (Why Options do Not Behave the Way They Should) - Trading Options Prior to Expiration - An Illustration of Delta and Time Decay - Vertical Spreads vs. Outright Option Buying - Developing Realistic Expectations 12:00-1:00 Lunch (will be provided) 1:00-2:30 Strategy Selection (Having An Option and Doing the "Right" Thing) - Market Scenarios That Indicate Various Option Strategies - Choosing the "Right" Option - "Repairing" Losses Without Increasing Risk 2:30-2:45 Break 2:45-3:30 Understanding Volatility (The Most-Used And Least-Understood Word In The Options Business) - What Volatility Means and How it Affects Option Prices - Vega - The Other "Greek" You Need to Know - The Meaning of Implied Volatility, Expected Volatility, Historical Volatility and Future Volatility 3:30-5:00 Managing Positions (What You Can do When Something Goes Wrong - or Right) - "Repairing" Losses Without Increasing Risk - Managing a Position Established Earlier That is Either Profitable or Unprofitable

5 Page 5 Part 3: Advanced Options Trading (half-day session - Wednesday, April 13, 2005) Experienced option users will learn the trading and hedging applications of several advanced strategies that will be discussed in depth. Traders will learn the importance of tracking implied volatility, and hedgers will learn exactly how the strategies work and what can be expected from them. 8:30-9:15 am Advanced Option Price Behavior (The Greeks and Strategy Analysis) - Delta, Gamma, Vega And Theta - Options Price-Change Analysis - Position Greeks and Strategy Price Behavior 9:15-10:00 am Volatility Trading (Tracking Changes in Implied Volatility) - A Delta-Neutral Trading Example - Planning Trades With A Forecast of Volatility 10:00-10:15 am Break 10:15-11:00 am Advanced Trading Strategies (Ratio Spreads, Volatility Spreads and Time Spreads) - Understanding How and Why Advanced Strategies Work - Developing Realistic Expectations for Results - Trading Rules for "Getting In" And "Getting Out" 10:15-12:00 noon Advanced Hedging Strategies (Using Advanced Trading Strategies for Hedging) - Speculating Vs. Hedging - Gamma Plans, Defined and Explained - Risk Hedges The cost of this half-day program is $ per person and will be held in the Informa Economics office at 775 Ridge Lake Blvd., 4th Floor - Training Room, Memphis, Tennessee. The fee includes course instruction and materials. Mr. Bittman will be teaching this advanced session.

6 Page 6 General Information Your fee includes all class materials, with lunch provided on Tuesday. Dress code is casual--coat and tie are not required. Hotel accommodations are your responsibility and are not included in the fee. However, we do recommend the following hotels that are closest to our office. The Hilton Memphis Hotel (formerly the Park Vista Hotel; the Adams Mark Hotel) and the Hawthorn Suites are across the street from each other and both hotels are 6 buildings south of our office. The Hilton Memphis Hotel 989 Ridge Lake Blvd. Memphis, TN The Hawthorn Suites 1070 Ridge Lake Blvd. Memphis, TN (901) (901) =MEMPHHF From the Memphis International Airport, the most convenient way to reach the above hotels and/or our office is by cab (approximately $25.00/$30.00 one-way). The fee for each session is listed below. Payment can be made by credit card (Visa, MasterCard or American Express) or by check. Full payment is required by Monday, April 4, 2005 for any session you attend. Please use a copy of your registration form as your invoice, if needed. Cost for each class is as follows: $ Part 1: Introduction to Hedging With Options Monday, April 11 $ Part 2: Hedging and Trading with Options Tuesday, April 12 $ Part 3: Advanced Options Trading Wednesday, April 13 PLEASE NOTE: The Introduction Course (Part 1) cannot be taken without the Hedging and Trading With Options Course (Part 2); however, Part 2 can be taken without Part 1. If you have taken Part 2 before and wish to register for only the Advanced Options Trading Course (Part 3) or if you feel you are advanced in your use of options and would like to register for just Part 3 that would be permissible. Class space is limited, so early registration assures your place. If you have any additional questions, please contact: Rosamary Posey at (901) , FAX (901) or by - rosamary.posey@informa economics.com

7 Page 7 REGISTRATION FORM : Hedging & Trading with Options Informa Economics, Inc. 775 Ridge Lake Blvd., Training Room, 4 th Floor Memphis, Tennessee SPECIAL NOTE: If you elect to register by postal mail instead of on-line, please FAX a copy of your completed form to: Attn: Rosamary Posey - Options, Fax: (901) before you MAIL your registration form/payment to us to ensure there is space remaining in this course. The postal address is: P.O. Box 17339, Memphis, Tennessee Please complete a registration form for each attendee from your company. Name: Title: Company: Address: City: State: Zip: (please include your address) Address: Telephone: FAX: PLEASE CHECK COURSES YOU WISH TO ATTEND: $ Part 1: Introduction to Hedging With Options April 11, 2005 $ Part 2: Hedging and Trading with Options April 12, 2005 $ Part 3: Advanced Options Trading April 13, 2005 xxxxxxxx $ - Total SPECIAL NOTE: The Introduction Course (Part 1) cannot be taken without the Hedging & Trading With Options Course (Part 2); however, Part 2 can be taken without Part 1. If you have taken Part 2 before and wish to register for only the Advanced Options Trading Course (Part 3) or if you feel you are advanced in your use of options and would like to register for just Part 3 that would be permissible. PLEASE CHECK METHOD OF PAYMENT: Attendee Will Mail Check (make your check payable to Informa Economics, Inc.) Attendee Will Pay by Visa, MasterCard or American Express (please complete below) Credit Card: (circle) VISA MASTERCARD AMER. EXPRESS Cardholder: Card Number: Expiration Date: REGISTRATION FEE DUE BY: MONDAY, APRIL 4, 2005