Module aim
The module covers a variety of topics relating to commodity options.

Target audience

The target audience is anyone involved in the physical or financial commodities market.
 
 

Download the Introduction to Commodity Options Course Outline here
 

Objectives

By the end of the module the participant will be able to:

• Outline the main terminology associated with commodity options
• Outline the intuition behind option valuation
• Describe how options could be used to hedge exposures or to enhance the yield on inventories
• Explain the basics of using options to express views on expected market movements

Topics

• Option terminology
• Option valuation
• Time Value and intrinsic value
• Factors that impact the value of an option
• Protective puts and covered calls
• Directional and volatility driven trading strategies

Course Presenter

Neil Schofield is the principal trainer for FMT Ltd.  He was previously global head of financial market training at Barclays Capital.  He teaches primarily on the rates business, covering all of the major asset classes and their respective derivative products from foreign exchange through to commodities. He is author of two books, Commodity Derivatives: Markets and Applications” and “Trading the Fixed Income, Inflation and Credit Markets”.

Course length

41 minutes 57 seconds
 
 
Prerequisites

A basic understanding of commodity concepts would be useful.