ENTRIMA
Training:
Options – Investing
Short description
Transact options and try to make money, as much as you can.
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.
Notes:
- Time-to-maturity (options & underlying future) = 10 months.
- Start price underlying future = 60.00
- Strike price of both options = 60.00 (the options are initially at-the-money)
- Feel free to pause the simulation when it is running. This allows you to temporarily stop the dynamics, which allows you to analyse while the market is frozen.