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Options Pricing Models & Derivatives Strategies

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Options Pricing Models & Derivatives Strategies

This course is part of Derivatives Trading & Risk Management Specialization

Instructor: EDUCBA

Included with

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6 modules

Gain insight into a topic and learn the fundamentals.

1 week to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

6 modules

Gain insight into a topic and learn the fundamentals.

1 week to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

What you'll learn

Analyze options pricing using models like Black-Scholes.
Interpret Greeks (Delta, Gamma, Vega, Theta) for risk measurement.
Apply derivatives and swap strategies for risk management.

Skills you'll gain

Details to know

Shareable certificate

Add to your LinkedIn profile

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This course is part of the Derivatives Trading & Risk Management Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 6 modules in this course

Master options pricing models and derivatives strategies used in modern financial markets. Learn how to evaluate options, interpret Greeks, and apply swaps for effective risk management.

This course provides a structured approach to understanding derivatives with a strong focus on options pricing and practical application. You will begin with the fundamentals of options, including call and put contracts, strike prices, and payoff structures. You will then explore how option prices are determined using key models such as Black-Scholes, while understanding the role of volatility, time to expiry, and market conditions. The course also introduces option sensitivities—Delta, Gamma, Vega, and Theta—helping you measure risk and price movement effectively. As you progress, you will learn to construct synthetic positions and interpret real-world trading scenarios. The course also covers swap instruments, including currency, equity, and credit default swaps, explaining how they are used to manage financial exposure. By the end of the course, you will be able to analyze options pricing, interpret Greeks, and apply derivatives strategies confidently in trading and risk management environments.

Module details

This module introduces the fundamental concepts of derivatives and options, including call and put options, strike price, expiration, and payoff structures. Learners will build a strong conceptual foundation to understand how options work and how profit and loss are determined.

What's included

7 videos4 assignments

7 videosTotal 64 minutes

Introduction to Derivatives Options8 minutes
Options Contract Characteristics8 minutes
Option Strategy7 minutes
Difference Between Long Call and Short Call8 minutes
Option Styles13 minutes
Factor Affecting Premium8 minutes
Options At a Glance12 minutes

4 assignmentsTotal 60 minutes

Introduction to Options Basics10 minutes
Core Option Strategies10 minutes
Market Overview and Pricing Drivers10 minutes
Graded - Foundations of Options Trading30 minutes

This module explores how option prices behave in real-world scenarios by examining factors such as volatility, time to expiry, and pricing models. Learners will understand how different variables influence option premiums and valuation techniques.

What's included

6 videos4 assignments

6 videosTotal 52 minutes

Short Call Example11 minutes
Introduction to Advance Derivatives9 minutes
Factors Affecting the Options Value10 minutes
Black and Scholes Formula8 minutes
Value of Call Option8 minutes
Changing the Numbers7 minutes

4 assignmentsTotal 60 minutes

Strategy in Action10 minutes
Key Pricing Influences10 minutes
Option Valuation Techniques10 minutes
Graded - Practical Options Understanding30 minutes

This module focuses on constructing synthetic positions and understanding delta as a key sensitivity measure. Learners will explore how options replicate other financial instruments and how probability and price movement affect option behavior.

What's included

6 videos4 assignments

6 videosTotal 52 minutes

Synthetic Long and Short Future6 minutes
Synthetic Long and Short Future Continue8 minutes
Delta9 minutes
Sensitivity of Delta10 minutes
In the Money Option11 minutes
Playing with Delta Value8 minutes

4 assignmentsTotal 60 minutes

Building Synthetic Positions10 minutes
Introduction to Delta10 minutes
Understanding Moneyness and Delta Behavior10 minutes
Graded - Synthetic Positions and Delta Concepts30 minutes

This module delves into advanced option pricing concepts, including volatility, Gamma, Vega, and Theta. Learners will develop a deeper understanding of how option sensitivities impact pricing and risk management.

What's included

7 videos4 assignments

7 videosTotal 52 minutes

Volatility Changes9 minutes
Time to Expiry- Long Dated Options3 minutes
Gamma-Sensitivity Analysis8 minutes
Changing the Parameters10 minutes
Vega6 minutes
Delta of ATM Call8 minutes
Vega Example8 minutes

4 assignmentsTotal 60 minutes

Volatility and Time Impact10 minutes
Gamma and Sensitivity Analysis10 minutes
Vega and Volatility Sensitivity10 minutes
Graded - Volatility and Advanced Greeks30 minutes

This module introduces time decay (Theta) and the fundamentals of swaps. Learners will understand how option value erodes over time and how swaps are used to manage financial exposure.

What's included

7 videos4 assignments

7 videosTotal 41 minutes

Theta11 minutes
Theta Example9 minutes
Introduction to Swap7 minutes
Comparative advantage in Swap2 minutes
Types of Swap4 minutes
Intrest Rate Swap3 minutes
Example of Intrest Rate Swap5 minutes

4 assignmentsTotal 60 minutes

Understanding Theta10 minutes
Introduction to Swaps10 minutes
Types and Interest Rate Swaps10 minutes
Graded - Time Decay and Introduction to Swaps30 minutes

This module covers advanced swap instruments and valuation techniques. Learners will explore currency swaps, equity swaps, commodity swaps, and credit default swaps, along with their practical applications in financial markets.