Curriculum·Senior·R406
Options and Structured Positions
GameStop, January 2021. Trading in GameStop options concentrated in short-dated calls, and implied volatility on its options reached about nine times its typical 2020 range.
Start with lesson 15 lessons · about 3.1 hours · free account to read in full
Lesson 1 opens on
Portfolio insurance and 19 October 1987
Portfolio insurance was a technique for replicating a protective put without buying one, by selling index futures as the market fell and buying them back as it rose, in proportion to the option's changing delta. By October 1987 an estimated $60B to $90B of equity assets were being dynamically hedged this way.6 percent, in a single session.
The lessons
- R406-01Options fundamentalsState the four things that define any option contractabout 32 min · opens on Portfolio insurance and 19 October 1987
- R406-02The Greeks in plain languageDefine delta, gamma, vega and theta as answers to four separate questionsabout 43 min · opens on The LJM Preservation and Growth Fund, February 2018
- R406-03Implied volatilityExplain what implied volatility is, and why it is a price rather than a forecastabout 42 min · opens on The VIX record, 16 March 2020
- R406-04Practical structures, hedging firstBuild the four basic structures and state what each one capsabout 33 min · opens on Cathay Pacific's fuel hedges, 2008
- R406-05What not to do, and what is on-chainList the five option positions this curriculum tells you not to take, and whyabout 34 min · opens on The Opyn v1 exploit, 4 August 2020