Derivatives Made Easy

This course is curated to provide a comprehensive understanding of derivatives trading. It covers the various aspects of the F&O market.

In this course, you will know how the futures and options work. Through this, you will know how to trade in the market by understanding various strategies, and additionally, you will know to manage your risk efficiently. Please check out the snapshot of the Derivatives Made Easy:

Section 1: Introduction to Derivatives

You will know about the derivatives, including its types, such as Forwards, Futures, Options and Swaps.

Section 2: Introduction to Forwards and Futures

Understand forwards and futures contracts and various participants, i.e., Hedgers, Speculators and Arbitrageurs.

Section 3: Futures Markets

• Get a comprehensive understanding of different terminologies associated with the futures using the NSE website, including instrument type, symbol, underlying value, market lot, contract value, basis, etc.
• Understand how futures act as a trading opportunity and get insights into the payoff structures for long and short positions.
• Gain in-depth knowledge about financial leverage and the difference between equity and futures.
• Get an insight into two different models for pricing futures, i.e., the cash and carry model and the expectancy model.
• Additionally, you will learn about Nifty futures and the difference between stock and nifty futures.

Section 4: Introduction of Options

• Get an overview of options and types, such as call and put options. 
• Concept of American and European options. 
• In-depth insights into the payoff structure for both long and short positions.

Section 5: Options Pricing

• Get an understanding of the moneyness of options and know how to determine the intrinsic value and time value with an example.
• Gain a comprehensive understanding of the broad classification of moneyness, i.e., ITM (In the Money), ATM (At the Money) and OTM (Out of the Money).
• Learn the various factors that affect the pricing spot price, strike price, expiry date, interest rates, dividend and volatility.

Section 6: Option Greeks

You will know about the Option Greeks such as Delta, Gamma, Theta, Vega and Rho and its implications.

Section 7: Open Interest and Rollover

Understand open interest and rollover and why they are essential in derivative trading. Additionally, you will learn how to track F&O contracts using StockEdge App.

Section 8: Trading, Clearing and Settlement

Gain in-depth insights into the concept of margin settlement and how does margin system work in the F&O with an example.

Section 9: Options Strategies

• Understand various types of synthetic strategies, such as Long and Short Futures, Call-Put Parity, Synthetic Long Put and Short Call, Covered Call and Protective Put.
• Get comprehensive knowledge of Bull Call Spread, Bull Put Spread, Bear Call Spread and Bear Put Spread.
• In-depth understanding of Ratio Spread Strategies includes Call Ratio Back Spread, Put Ratio Back Spread, Ratio Call Front Spread and Ratio Put Front Spread.
• Learn how to Device a Long Butterfly using Calls and Puts and a Short Butterfly Strategy.
• Understand the Condor Strategy.
• Get insights into volatile and non-volatile strategies, including Long Straddle, Short Straddle, Strip and Strap, Strangle and Gut Strategy.