VOLATILITY TRADING

INTRODUCTION

Every trade is based on an outlook on the market. With stocks and almost all financial assets, one thinks about the direction of the market: Is it bullish or bearish, or is it sideways? When dealing with options however, it is not enough to think only about the market direction; it is also important to think about the “Greeks” beyond Delta : Gamma, Vega, and Theta. Where option valuation is concerned, what matters is not only the direction of the underlying asset, but also the volatility of the underlying and other investors’ perception of that volatility as well. The investor’s investment objective may not be achieved if one of these factors moves in an undesired direction. Gamma could lead to a rapid loss or gain, depending on whether the investor is short or long on the option, whereas theta could lead to a loss despite the underlying asset moving in the right direction. Vega could rise or fall depending on the market expectations of implied volatility change, leading to a loss or profit for the position. Furthermore, the option premium paid (if long) or received (if short) must be considered when calculating a position’s total profit and loss at maturity. 

OBJECTIVE

The most important thing to consider in case of Volatility Trading is that the use of Options allows the trader, through a variety of trading strategies, to un-bundle and seclude all of the various risk factors (the Greeks) and trade them separately. Once an initial position is taken, i.e. long or short, the trader is exposed to all of the various Greeks/risk factors. The undesired risk exposures, however, can then be hedged away, leaving only the desired risk exposure to exploit that specific directional view.

If you know how options work, and how to use them properly, you can have an actual advantage in the market. More importantly, Options can help you to put the odds in your favor.

TOPICS COVERED

The Topics covered in the VOLATILITY TRADING Practical Training Program are:

Options Pricing :

• Moneyness of Options
• Factors affecting Option Premium
• Calculations

Options Strategies:

• Bull and Bear Spread Strategies
• Volatile and Non-Volatile Strategies
• Hedging Strategies
• Advanced Options Strategies ( calender spread,diagonal spread,pair trading)
• Trading the volatility skew
• Sidha sauda, Ulta sauda & mixed sauda
• trading on the basis of IV vs HV

Option Greeks :

Detail Discussion On Options Greeks

• Delta
• Gamma
• Vega
• Theta
• Rho

Greeks Management :

Learn the art of Greeks Management

• Delta  & Gamma Management
• Theta Management
• Vega Management

Trade Management :

Detail discussion on different Trade Management  Techniques

Trade Sequence :

Detail Discussion on Below Topics

• Finding Set-Up
• Determining Allocation Size
• Planning Out The Trade
• Execution Entry
• Monitoring
• Exits

Different Topics :

• Understand the theory and mathematics behind Options.
• What are the factors that affect Options pricing.
• How are Options different than Stocks
• How you can use Options even if you invest in Stocks
• Art of adjusting Options strategies.
• How to Use Support & Resistance in Options Trading.
• How to Avoid Costly Trading Mistakes
• How to Develop The Right Trader Mindset
• How to Lower Your Risk and Maximize Your Profits
• how to choose the strike price and expiry period.

Softwares & Mobile Apps :

Learn how to utilize different software and mobile apps for trading

• Options Analysis Software
• Back testing Software
• Virtual Trading Software
• Useful Mobile Apps
• Charting Software

SUPPORT

•  We will also add enrolled students  to our WhatsApp Trading Group  for any kind of doubt resolution related to content while pursuing the course.
• Students will also continue to receive market updates,trading ideas via this group on a regular basis.

CERTIFICATION

Students enrolling for this program will be given a “Certificate of Participation” from SSEI  facilitated by OptionTrade.in, after successful completion of the course.

INTENDED PARTICIPANTS

• Students
• Investors
• Traders
• Employees
• Sub Brokers
• Financial Service Professionals
• Anyone who is interested to learn about  Options Trading