Risk
Application of Options
Greek Letters, Delta Hedging, and Option Sensitivity Measures
2 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
This course covers the Greek letters that measure different aspects of risk in derivatives portfolios.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning. A certificate will be issued once you have completed all 2 units.
Course Sections
This course is made up of the following sections:
- Option Sensitivity Measures (3 Part Video Series)
- Option Sensitivity Measures (Quiz)
- Course Completion Survey
- Additional reading materials
What You Will Learn
- Distinguish between naked and covered option positions and calculate the profit and loss profile of each
- Explain delta, gamma, theta, vega, and rho as measures of option sensitivity to changes in underlying variables
- Describe stop-loss hedging strategies and their limitations for managing short option positions
- Calculate the payoff of a covered call position when the underlying stock price moves above or below the strike price
- Assess how continuously adjusted hedging differs from static hedging and when each approach is appropriate
Who This Course Is For
- Derivatives traders and risk managers who need to measure and manage exposure in options portfolios
- Finance professionals studying for FRM or CFA exams who need to understand the Greek letters in practice
- Portfolio managers who use options for hedging and want to understand the sensitivity of their positions
Prerequisites
- Understanding of options fundamentals (calls, puts, strike price, expiration, payoff diagrams)
- Familiarity with the Black-Scholes-Merton model or completion of the Option Valuation course
Frequently Asked Questions
Course Details
CPD Credits2
CertificateYes
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