Equity Options Strategies
As the sands of Equity Trading continue to shift, this pathway will ensure you are on top of the fundamentals. Beginning at the basic forms of stock options, you'll learn how to merge them to create various payoffs as well as their most popular business applications. You'll understand the main factors that determine the value of an equity option and the types of trading strategies that use combinations of options.
Pathway
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Certificates
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
8 videos • 1 hour 42 minutes
Equity Indices
Join Imran as he explains what equity indices are, the different types, why people use them, and some of the most popular products that are traded on them.
Imran Lakha • 09:39
Equity Options Basics (1/2): Calls and Puts
In the first video of his series, Imran explains the two basic forms of stock options i.e. CALLS and PUTS along with how you can merge them to create a whole bunch of various payoffs. He has also addressed their most popular business applications and the motivations that influence their supply and demand.
Imran Lakha • 08:10
Equity Options Basics (2/2): Valuation
In this video Imran discusses about the main factors that determine the value of an equity option. He also addresses the Greeks which help us to define key sensitivities to the various factors. Finally, he will show how the value of an option can be broken down into its INTRINSIC and TIME value components.
Imran Lakha • 10:22
Equity Option Trading (1/3): Strategies Combining Equity Options
There are three types of trading strategies that use combinations of options. These are volatility strategies, spreads and ratios, and hedging structures. Join Imran as he dives deeper into each strategy and their various applications.
Imran Lakha • 07:06
Equity Option Trading (2/3): The Greeks
In this video, Imran explains the main options Greek in detail. He further explains the concept of gamma trading and how volatility traders delta hedge their options positions to trade volatility agnostic to market direction. He also gives us an overview of how the greek profile of a vanilla option changes as we move through strike price and also as we pass through time.
Imran Lakha • 18:31
Equity Option Trading (3/3): Vega and Implied Volatility
In this video, Imran explains the meaning of implied volatility and how we can use the BS model to extract it from market option prices. He further discusses how vega is the greek exposure that an options price has to this implied volatility level and finishes with describing structure of volatility and how it can be used to derive forward volatility.
Imran Lakha • 13:27
Volatility Skew
In this video, Imran explains an important concept in equity volatility trading known as SKEW. He further talks about the main reasons of it's existence in equity markets and how combining skew and term structure allows us to construct the 3D volatility surface. Finally, he introduces the concept of dynamic Greeks, which are often the consequence of a large skew position.
Imran Lakha • 19:04
Sales or Trading?
In this video, Imran explains the key differences between the roles of sales and trading in the context of working on a trading floor in an investment bank as part of a flow business. He further talks about the skills required for both the roles and how you can go about assessing which role would be right for you.
Imran Lakha • 16:02
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