NUS RMI Workshop on Practical Applications of Options Risk Management Strategies

Synopsis

Options Risk Management is often perceived as a weighty and arduous topic. To overcome its inherent complexities, this 2-day course will therefore be conducted with an experiential approach, where hands-on simulations will allow Learners to solidify the newly acquired knowledge through practical applications.

Learners will be tasked to design their own Options Risk Management Strategies, and perform stress testing of their strategies on Epi-Trade®, a proprietary financial market simulator developed by Epitrain®. They will be able to scrutinize the efficacy of their strategies, while adjusting them appropriately to real-time market changes.

Epi-Trade® simulations create a realistic, dynamic and multi-faceted environment which provides a tangible platform for Learners apply key concepts taught in the course.

Learning Outcomes

• Identify the Risks associated with Options and Options Strategies
• Practice managing the risk from Options Sensitivities (the “Greeks”)
• Design and implement strategies to manage these risks
• Evaluate these strategies and make appropriate adjustments

Target Learners

• Mid-level Risk Managers
• Mid-Level Business Analysts
• Compliance Professionals
• Operations and Technology Professionals supporting Risk Functions

Assumed Knowledge

It is assumed that participants have a prior knowledge of the definitions of Puts and Calls, and knowledge of standard payoff diagrams.

Program Outline

• A. Creating Multi-Legged Complex Options Strategies
• •   Consolidated Payoffs
• •   Positioning Profit areas
• •   Pushing out Risk areas

• B. Hedging Options Sensitivities
• •   Delta
• •   Vega
• •   Gamma

• C. Managing Exceptional Conditions
• •   Liquidity
• •   Jump Events

• D. The Onset of Risk
• •   Positions arising from
  • Market Making
  • Arbitrage
  • Option Strategies

• E. Managing Option Risks
• •   Automatically Manage Exposures (Delta Hedging, Risk Reversals)
• •   Automatically Execute Trades when conditions are met
• •   Build in Risk Control Measures
  • Position Limits (Delta-equivalent exposures)
  • Loss Limits (Mark-to-Market factoring in Gamma and Vega)

Speaker

Mr Gerard Tong

• Master of Science in Financial Engineering
• Advanced Certificate of Training and Assessment
• 20 years of Financial Markets experience specializing in foreign exchange, derivative products and financial IT solutioning
• Varied roles of Trader, Market Maker, Product Structurer, Fintech Professional
• Trading, Risk Management and Market Surveillance Systems at SGXl
• Adjunct Professor at Risk Management Institute (National University of Singapore)

Program Date

20 to 21 September 2017

Program Fees

S$2,800 (subject to 7% GST)

Discount

We are pleased to offer the following discounts (either one)

• 15% discount for signups before 21 August 2017 (1 month ahead of program)
• 15% discount for signups of a group of 3 or more

Each participant who successfully completes the workshop will receive NUS RMI Certificate.

Registration