Short description

Transact options and try to make money, as much as you can.

Capacity

You act in the role of an option trader. You can transact one option series (both a call option and a put option), as well as the option’s underlying futures contract.
More specifically, you act in the capacity of aggressor.

Task

Your task is to set up the following option strategies and calculate the overall price of each of those strategies: a long call spread, a long put spread, an at-the-money straddle, a strangle, an even-money collar.

Objective

The aim of this simulation is to master the dynamics of option markets, as well as to learn how the price of options is impacted by the market dynamics of the underlying asset. Assure you maintain to control your market risk; limit the value at risk (VaR) of your position.

Conclusion

At the end of the simulation, analyse your performance. See what you have done and when you have done this and whether it could have been optimised. This way, you learn and optimise your competences.

Financials

Both exchange fee and clearing fee per traded contract is set at 0.01.