Equity Derivatives Masterclass

Intermediate

CPD: 14 hours

2 days

Live

Description

Equity derivatives provide flexible tools that allow investors to protect against the downside while maintaining exposure to the upside, to enhance price or yield, to make money in a stagnant market, to implement optimal buying or selling strategies over time, and many other possibilities. This two-day seminar explains exactly how.

By the end of the seminar, participants will gain a clear appreciation of the range of equity derivative products, understand how equity derivatives are priced, appreciate how to apply these products for the benefit of investors and identify risks and understand how to manage them.

Learning Outcomes

By attending this course, you will:

• Gain a clear understanding of the fundamentals of equity derivative products
• Develop an intuitive understanding of the pricing of equity derivatives and the impact of volatility
• Appreciate how option traders hedge and trade options
• Examine the concept of volatility as an asset class, and how to make practical use of the new VIX and variance derivatives
• Explore the practical applications of equity derivatives and their use by clients
• Recognise the needs and perspectives of investors who want to obtain performance-driven solutions
• Develop pro-active and innovative strategies using equity derivative products that add real value
• Obtain hands-on experience of equity derivatives and their use in practical situations

Who Should Attend

Anyone working in the equities markets, investment managers, and those working in private wealth management.

Prerequisites

An understanding of the equities markets.

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Seminar ContentStock-Index FuturesContract definitionsCash-and-carry pricingThe concept of the forward equity priceHedging equities portfolios using futuresTactical asset allocation using futures Equity SwapsTerminologyVariations of equity swapsTerm sheetsIntegrating swaps in equity portfoliosStructured equity swapscomputer Using equity swaps Principles and Characteristics of OptionsReview of equity optionsProfit profiles at and prior to maturityTime value – the true cost of an optionOption Pricing – An Intuitive ApproachAn intuitive insight into option pricingTypes of option pricing modelClosed-form option pricingBinomial option pricingMonte Carlo option pricingTime value revisitedEarly exercise of American optionsPut-call parityVolatility – historical vs. implied vs. experienced volsVolatility smiles and skewsVolatility and option pricesOption GreeksThe meaning of delta, theta, vega, gamma, and rhocomputer Option pricing workshopCombining Optionscomputer Designing your own structure – a fluent transition between payoff diagrams and component parts Option TradingDirectional vs. volatility tradingSpread tradingNear vs. far datesOut-of-the-money vs. in-the-moneyOptions vs. cashcomputer Directional and volatility trading with equity optionsVIX Futures, Options, and Variance SwapsVolatility as an asset classHistorical vs. implied volatility derivativesWhat is the VIX?VIX futures – concept and definitionsApplications for VIX futuresVolatility swaps and variance swapsPractical applications for variance swapscomputer Using VIX futuresHow Traders Hedge OptionsHow delta-hedging worksWhy be delta-neutral?Buying high and selling low to achieve delta-neutralityThe link between delta, gamma, and thetaThe trade-off between implied and experienced volatilitycomputer Delta-hedging simulationThe workings of an equity option trading deskHedging Strategies with Vanilla OptionsSummary of the key customer-driven strategiesPrice protectionHedging with options – advantages and disadvantagesBasic option hedge structuresSelling options within hedging programsCaps and collarPut-spread collarsParticipating forwardsZero-premium structurescomputer Hedging an equities portfolioYield Enhancement StrategiesPrice and yield enhancement strategiesIncome generation strategiesButterflies, conversions, and reversalscomputer Mini-workshop: the camel strategyCreating Synthetic ExposureBull and bear strategiesAsset allocation using equity derivativesCreating targeted plays90/10 strategiescomputer Mini workshop: the 90/10 strategyExotic Options and their UsesReview of exotic optionsPath-dependent options......Barriers, Asians, ladders and cliquetsOptions with step-like (digital) payoutsApplications for exoticsGuaranteed-return equity fundsContingent (pay-later) premium optionsMini-premium optioncomputer Building a mini-premium option

When and Where
   9 Dec 2026 - 10 Dec 2026
   09:00-17:00
   London
   Derivatives

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Other Dates and Locations
Search for Equity Derivatives Masterclass in our course schedule for alternative dates and locations where this course is offered.

Note that the course fee of £2,190.00 already includes 20% VAT .