Option Pricing and Its Influencing Factors by Murali Deshpande cover

Option Pricing and Its Influencing Factors by Murali Deshpande

Instructor: Murali Deshpande

Language: English

Validity Period: Lifetime

₹999 70% OFF

₹299

Course Overview: Led by options trading expert Murali Deshpande, this course delves into the intricacies of option pricing and the various factors that influence it. Suitable for both novice and experienced traders, this course provides a comprehensive understanding of the mechanics of option pricing and the key variables that impact option values.

What the Course Offers:

  1. Introduction to Option Pricing:
    • Overview of options and their basic characteristics.
    • Understanding intrinsic value and extrinsic value of options.
    • The importance of option pricing in trading strategies.
  2. The Black-Scholes Model:
    • Introduction to the Black-Scholes option pricing model.
    • Key assumptions and limitations of the Black-Scholes model.
    • Practical applications and calculations using the Black-Scholes formula.
  3. Option Greeks and Their Impact:
    • Detailed explanation of the key Option Greeks: Delta, Gamma, Theta, Vega, and Rho.
    • How each Greek affects option pricing and risk management.
    • Strategies for trading and hedging using Option Greeks.
  4. Factors Influencing Option Pricing:
    • The role of the underlying asset price in option pricing.
    • Impact of time to expiration on option value (Theta decay).
    • Effect of volatility on option pricing (Vega) and how to measure it.
    • Influence of interest rates (Rho) and dividend yields on option prices.
  5. Volatility and Its Measurement:
    • Understanding historical volatility vs. implied volatility.
    • Tools and methods for measuring and analyzing volatility.
    • Strategies for trading based on volatility predictions.
  6. Advanced Pricing Models:
    • Overview of advanced option pricing models beyond Black-Scholes.
    • Binomial and trinomial models for option pricing.
    • Monte Carlo simulations and their application in option pricing.
  7. Practical Applications and Case Studies:
    • Real-world examples of option pricing in different market conditions.
    • Case studies demonstrating the impact of various factors on option pricing.
    • Learning from historical data and market scenarios.
  8. Risk Management in Options Trading:
    • Techniques for managing risk using options.
    • Setting appropriate stop-loss and take-profit levels.
    • Position sizing and portfolio diversification strategies.
  9. Tools and Resources:
    • Introduction to software and platforms for option pricing and analysis.
    • Access to real-time data and analytics tools.
    • Recommendations for further reading and continuous learning.
  10. Interactive Learning and Community Engagement:
    • Participation in live webinars and Q&A sessions with Murali Deshpande.
    • Engaging with a community of traders for discussions and support.
    • Ongoing updates and supplementary materials based on market developments.

This course equips traders with a deep understanding of option pricing mechanisms and the various factors influencing option values, enabling them to make more informed and strategic trading decisions.

 

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