Options – Hedging Exposures

Derivatives — Markets & Trading

About the online training programme

Options can be used for hedging purposes, whereas option positions can be hedged with forwards or futures. This course provides the essentials of hedging strategies with options. It is covered how commodity consumers can hedge their exposures with options, and the same applies to commodity producers. Next, it is set out how options can be hedged with term contracts. In particular the concept of Delta-hedging is explained.

Course Contents

This course covers the following video lessons:

  1. Consumer hedge – Introduction
  2. Consumer hedge – Capping at different levels
  3. Consumer hedge – Selecting the strike price
  4. Producer hedge – Introduction
  5. Producer hedge – Flooring at different levels
  6. Producer hedge – Selecting the strike price
  7. Selection of strike & maturity
  8. Hedging a linear exposure with a non-linear instrument
  9. Hedging a non-linear exposure with a linear instrument
  10. Hedging long call with short future
  11. Hedging short call with long future
  12. Hedging long put with long future
  13. Hedging short put with short future
  14. Delta-hedging – Introduction
  15. Delta-hedging – Dynamic hedging
  16. Delta-hedging – Delta-neutrality
  17. Delta-hedging – Making or losing money
  18. Delta-hedging – Relevant Greeks
  19. Delta-hedging – Premium long or short

This course also includes examination and certification.

Learning Platform

€ 1,490

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Our Purpose

Entrima provides learning services for professionals in the commodity & energy markets.

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Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

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