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Options Primer


INTRODUCTION

Options belong to the larger group of securities known as derivatives. The price of a derivative instrument is dependent on or derived from the price of something else. This short course will focus on understanding the mechanics of options and their uses in trading and investment.

COURSE DURATION

1.0 hour

COURSE OBJECTIVES

  1. Understand how options contracts, especially single stock and stock index options work
  2. Learn the essential pricing principles for options
  3. Understand how to use options in trading and investing
  4. Know simple but yet essential option payoffs
  5. Understand options Greeks and their importance

COURSE OUTLINE

Module 1: What is an Option?

  • Call Options
  • Put Options
  • Options are All Around Us!

Module 2: Option Pricing Fundamentals

  • General Factors that Determine Option Prices

Module 3: Option Payoff

  • Call Options
  • Put Options

Module 4: Why Options?

  • Earning Income
  • Protecting the Value of Your Shares
  • Capitalising on the Share Price Movements Without Having to Purchase/Short-Selling Shares
  • Using Options Give You Time to Decide

Module 5: Trading Index Options

  • How are Index Options Different from Single Stock Options?
  • The Key Advantages of Trading Index Options

Module 6: Options Risk Metrics: The Greeks

  • Delta
  • Gamma
  • Theta
  • Vega
  • Rho
  • Minor Greeks

Module 7: Common Options Trading Mistakes

Assessment


IBF-FTS Funding

The Financial Training Scheme (“FTS”) provides funding for financial sector-specific training programmes which are recognized under FTS. This scheme is only eligible for company-sponsored participants who are Singapore Citizens or Singapore Permanent Residents, physically based in Singapore, and who have successfully completed a FTS programme. Financial Institutions (MAS licensed or exempt entities), involved in or supporting financial sector activities, are eligible to submit claims for company-sponsored participants.

For all FTS programmes commencing on or after 8 April 2020 to 31 December 2021, MAS will enhance course fee subsidies for locals attending accredited or recognised courses up to 90% co-funding of direct training costs, subject to existing grant caps of S$2,000 per programme..

IBF will provide an additional 5% in support in the form of IBF Credit, bringing the course fee subsidy up to 95% of course fees subsidies until 30 June 2021. This existing scheme will also be expanded to include workers in eligible FinTech firms.

For more information, please refer to IBF website.


Terms and Conditions

1) This e-training programme takes approximately an hour to complete.

2) In order to qualify for Continuing Education credits from SGX, please complete all quiz questions found at the end of each tutorial (a 70% pass rate is required) by 31 December 2021.

3) Access to the e-training materials is valid to the end of the calendar year.

4) Upon successful registration, an online course access email will be sent to you within 2 working days. If you are new to Salmon Thrust online learning system, you will receive an additional invitation email to create your online account.

5) If participants wish to make any changes to their application or request for a refund, written notice should be given within 10 business days of receiving the access ID and password to the online programme and provided the access has not been utilised. There will be an administrative fee of 20% of the fees paid. There will be no changes or refund if notice is given thereafter or if the access has been utilised.

6) It is recommended to login the web browser via a personal computer.

7) For assistance please contact e-training@sgxacademy.com or call 6670-6808.
(Operating Hours: 9.00am to 5.00pm)


This course is recommended for Trading Representatives and Professionals who need to meet their Continuing Education Credit.

SGX reserves the right to make changes to information regarding the programme if warranted by circumstances beyond its control.


Disclaimer:

By completing this registration form and providing your personal data, you agree and authorise Singapore Exchange Limited and its affiliates (collectively, “SGX”) to provide your personal data to Salmon Thrust Pte Ltd for the purposes of conducting and managing this e-course. In addition, by registering for and participating in the e-course, you acknowledge and agree to the following terms: You acknowledge and agree that this e-course is offered by Salmon Thrust Pte Ltd and conducted on a website/platform that is not owned, controlled and/or operated by SGX. SGX shall not be responsible for the consequences of your accessing such website/platform and/or the content at website/platform. SGX makes no guarantee, representation or warranty as to, and shall have no liability for, any content of such website/platform. Such website/platform linked to the SGX website does not constitute (a) an endorsement, authorisation, verification or representation that we are affiliated with the operators or owners of such website/platform; or (b) an endorsement, authorisation, verification, or representation of or as to the contents of website/platform. You agree that your access to and/or use of such website/platform is entirely at your own risk and subject to the terms and conditions of access and/or use contained therein (including Salmon Thrust Pte Ltd’s privacy and data processing policies and practices). SGX shall not be responsible or liable for any loss, damages and/or costs arising from or in connection with your registration and/or participation in the e-course and/or your access to such website/platform. The General Terms of Use of the SGX website shall apply and be incorporated herein.

Event Details