Equity Derivative Hedging Course
Course Overview
Welcome to the Equity Derivative Hedging Course (Code-103). This course offers a detailed understanding of equity derivatives and various hedging strategies to manage market risks effectively. It is divided into six comprehensive modules.
Course Overview
The course is structured into 06 modules, each focusing on a specific aspect of the share market and technical analysis. Below is a detailed outline of each module.
Our Course Details
Module 1: Basics of Equity Derivatives
Introduction to Equity Derivatives
Understand the role of equity derivatives in hedging against market risks.
Key Concepts in Options Trading
- Strike Price (X): The price at which the option can be exercised.
- Open Interest: The total number of outstanding options contracts.
- Premium: The cost of purchasing an options contract.
Types of Options
- ATM (At-The-Money): The strike price is equal to the current market price.
- OTM (Out-of-The-Money): The strike price is less favorable compared to the market price.
- ITM (In-The-Money): The strike price is more favorable compared to the market price.
Break Even Point (BEP) and Payoff Charts
Learn how to calculate the BEP and construct payoff charts for various options strategies.
Module 2: Basic Option Strategies
The Four Basic Strategies
- Long Call: Buying a call option to benefit from rising prices.
- Long Put: Buying a put option to benefit from falling prices.
- Short Call: Selling a call option expecting prices to stay stable or fall.
- Short Put: Selling a put option expecting prices to stay stable or rise.
Risk-Reward Profiles
Understand the risk and reward profiles of each strategy and their applications in different market scenarios.
Module 3: Advanced Option Strategies
Straddle Strategies
- Long Straddle: Buying both a call and put option at the same strike price, expecting high volatility.
- Short Straddle: Selling both a call and put option at the same strike price, expecting low volatility.
Strangle Strategies
- Long Strangle: Buying a call and a put option with different strike prices, expecting high volatility.
- Short Strangle: Selling a call and a put option with different strike prices, expecting low volatility.
Risk-Reward Profiles and Adjustments
Learn the risk-reward profiles and potential adjustments for these advanced strategies.
Module 4: Options to Options Hedging
Iron Fly and Iron Condor Strategies
- Iron Fly: Combining four options to create a position with limited risk and profit potential.
- Iron Condor: Similar to the Iron Fly but with different strike prices for calls and puts.
Constructing and Managing Risk
Learn how to construct these strategies and manage risk effectively.
Module 5: The Spreads (Debit and Credit)
Debit and Credit Spreads
- Debit Spread: A strategy involving buying and selling options where the net cost is paid upfront.
- Credit Spread: A strategy involving buying and selling options where the net premium is received upfront.
Common Spread Strategies
- Bull Call Spread
- Bear Put Spread
- Bull Put Spread
- Bear Call Spread
Applications in Different Market Conditions
Explore how these spreads are applied in various market scenarios to manage risk and optimize returns.
Module 6: Futures to Options Hedging
Protected Put and Covered Call Strategies
- Protected Put: Using a put option to protect against downside risk in a long futures position.
- Covered Call: Selling a call option while holding the underlying asset to generate additional income.
Hedging Against Adverse Price Movements
Learn how to use these strategies to hedge against adverse price movements in the futures market.
This course provides a comprehensive understanding of equity derivative hedging strategies, empowering participants to manage market risks effectively and enhance their trading and investment portfolios.
For further information and to enroll in the course, please contact us at : consultation@ethicaltradeacademy.com
- Our Mission
Ensuring a solid understanding of the stock market is crucial for effective trading. Through comprehensive education and practical analysis, investors gain the confidence and skills needed to navigate market dynamics, mitigate risks, and capitalize on opportunities. Continuous learning and staying updated with market trends are essential for long-term success.
Advice in stock market learning is invaluable. Experienced traders provide insights on strategies, risk management, and market analysis. Their guidance helps beginners avoid common pitfalls, make informed decisions, and develop a disciplined approach to investing. Trustworthy advice empowers traders to build a strong foundation and achieve financial goals.
Planning is vital in stock market investing. It involves setting clear financial goals, creating a diversified portfolio, and developing a strategic approach to buying and selling stocks. Thoughtful planning helps manage risk, optimize returns, and navigate market fluctuations, ensuring long-term financial growth and stability.
We are here to address any questions you may have as you implement your plan. Additionally, for clients seeking an ongoing partnership, we provide comprehensive Financial Planning.
