Options Strategy (Online)

Learn the most advanced derivative tool for mitigating risk and increasing returns

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Course Dates

STARTS ON

September 28, 2022

Course Duration

DURATION

6 weeks, online
4-6 hours per week

Course Fee

Expand Your Options as a Sophisticated Investor

Options trading has experienced a substantial increase in popularity, with the number of trades surging by 35 percent in 2021 compared to previous years. In the United States alone, brokerages received US$2.4 billion in payment for order flow (PFOF) for options and only US$1.3 billion for equities. Despite this rapid growth, there exists a considerable gap in knowledge and understanding of the potential to use these instruments for responsible risk mitigation and profit maximization.

Designed by expert finance faculty at Columbia Business School Executive Education, the Options Strategy program gives investors and finance professionals a deep understanding of options, including how to incorporate financial instruments in an overall investment strategy.

39 Million

In 2021, a record 39 million options contracts traded daily, an increase of 35 percent over 2020.

(Source: Options Clearing Corporation )

Key Takeaways

After participating in this program, you will be able to:

  • Develop options vocabulary and interpret option payoffs
  • Unlock options trading strategies and their uses
  • Identify and apply the determinants of option value
  • Extract investment-relevant information from options
  • Gain insights to strategically use options as part of a well-designed portfolio

Program Modules

Module 1:

Introduction to Options

Following a high-level overview of derivatives in general, you will explore how and why investors trade options.

Module 2:

Understanding Call Options

Delve deep into the mechanics and contract features of options, and examine the inherent leverage these products offer.

Module 3:

Portfolios with Options and Portfolios of Options

Understand how put options insure against market crashes, illustrated by an examination of how puts functioned during the 2008 financial crisis and during the COVID-19 pandemic in 2020.

Module 4:

Understanding Options Valuation

Develop a deep understanding of how to determine the value of options using the Black-Scholes model, as well as a simplified version known as the binomial model.

Module 5:

Volatility and the VIX Index

Armed with valuation tools, you will embark on a detailed study of volatility — the main determinant of option prices. This module explores how a range of different options are priced in the real-world market, including index options, options on individual stocks, and options on bonds and crude oil.

Module 6:

Options in the Real World

Through the lens of historical data and events, you will benefit from our faculty’s deep research and direct experience with market-defining events, giving you a front row seat to theory meeting practice.

Module 1:

Introduction to Options

Following a high-level overview of derivatives in general, you will explore how and why investors trade options.

Module 4:

Understanding Options Valuation

Develop a deep understanding of how to determine the value of options using the Black-Scholes model, as well as a simplified version known as the binomial model.

Module 2:

Understanding Call Options

Delve deep into the mechanics and contract features of options, and examine the inherent leverage these products offer.

Module 5:

Volatility and the VIX Index

Armed with valuation tools, you will embark on a detailed study of volatility — the main determinant of option prices. This module explores how a range of different options are priced in the real-world market, including index options, options on individual stocks, and options on bonds and crude oil.

Module 3:

Portfolios with Options and Portfolios of Options

Understand how put options insure against market crashes, illustrated by an examination of how puts functioned during the 2008 financial crisis and during the COVID-19 pandemic in 2020.

Module 6:

Options in the Real World

Through the lens of historical data and events, you will benefit from our faculty’s deep research and direct experience with market-defining events, giving you a front row seat to theory meeting practice.

For full details of the curriculum, please download the brochure.

Who Should Attend?

Mid- to senior-level institutional investors seeking to deepen their understanding of options and overall learn how to incorporate this knowledge into their portfolio strategies.

Financial professionals who are changing roles or seeking to expand their skillset to include more advanced investment strategies.

Individual investors seeking to manage risk, improve returns, and make more informed decisions for their personal portfolios.

Note: Basic knowledge of financial markets, financial terminology, and Microsoft Excel are recommended to obtain maximum benefits.

Featured Micro Case Studies

Tesla

Tesla

Crude Oil

Crude Oil

Option Contracts and Their Valuation

Option Contracts and Their Valuation

Optionsellers.Net

Program Experience

Decorative image relating to Live office hours

Live office hours with Q&A

Decorative image relating to Peer learning and feedback

Peer learning and feedback

Decorative image relating to Real-world options evaluation

Real-world option valuation exercises

Decorative image relating to Weekly assignments

Weekly assignments

Decorative image relating to Discussions

Knowledge checks and discussion forums

Decorative image relating to Mobile Learning App

Mobile learning app

Decorative image relating to Dedicated Program Support Team

Dedicated program support team

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Program Faculty

Faculty Member Michael Johannes

Michael Johannes

Ann F. Kaplan Professor of Finance, Columbia Business School

Professor Johannes joined the faculty at Columbia in 2005. He holds a PhD and an MA in Economics from the University of Chicago. More info

CERTIFICATE

Example image of certificate of participation that will be awarded upon completion of the program

CERTIFICATE

Upon completion of this program, you will receive a certificate of participation from Columbia Business School Executive Education — a powerful testament to your management capabilities.

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Flexible payment options available. Learn more.