Energy fundamentals futures options trading
This proven program is for professionals who are looking for a comprehensive and clearly explained understanding of natural gas, oil and electricity financial instrumentsthe markets they trade in, and how these powerful tools can be used to manage risk and structure profitable transactions.
This fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar. The seminar will start promptly at 8: On the second day, the seminar will resume at 8: The program includes continental breakfast, energy fundamentals futures options trading and coffee breaks on the first day and a continental breafast and coffee breaks on the second energy fundamentals futures options trading. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference.
Dress is casual for all seminars. Because of the diversity of hotels found in the area, we will not be holding a block of sleeping rooms with one particular hotel. Adamiak is a well-known and highly effective seminar presenter who has over 20 years experience in the natural gas and electric power industries. His background includes 15 years as a seminar instructor, 9 years of energy transaction experience, and 6 years of strategic planning and venture capital activities.
John's academic background includes an M. Summary More information List of Speakers Agenda. What You Will Learn How to use futures contracts, options, swaps, trigger deals and EFPs to protect your company from natural gas, oil and electricity price risk.
How physical and cash settled futures contracts, over-the-counter energy swaps, and physical forward contracts are traded. How buyers and sellers can use natural gas futures and options to create price hedges, price caps, price floors, and energy fundamentals futures options trading collars to manage both natural gas and electricity price risk. What basis risk is and how basis and delivery risk can destroy your hedging program.
How to structure profitable energy and electric power transactions without exposure energy fundamentals futures options trading price risk, and what "trading around assets" means. A summary of industry clearing procedures and deal contract language. The difference between brokers, traders, dealers, market-makers, marketers and wholesale energy merchants.
Why most energy and power traders prefer to execute hub-referenced transactions instead energy fundamentals futures options trading doing point-to-point deals. How electricity futures and derivatives are impacting the forward electric power markets. You Will Also Learn How basis trading, volatility trading, structured transactions and EFPs work, and how over-the-counter energy dealers make markets. How heat-rate-linked power transactions can effectively convert natural gas futures, options, swaps and other financial instruments into electric power derivatives.
The Master Energy Trading Equation and why trading energy is different from trading financial products and other commodities. The basics of energy and electricity options, the implications of high energy price volatility, and why energy and electric power assets are really options in disguise. How to calculate annualized volatility, the fundamentals of pricing options and why the Black Scholes model doesn't work for pricing energy and electricity options.
The put-call option parity equation, synthetic option positions, and how to delta hedge. Prerequisites This fundamental level group live seminar has no prerequisites. Hotel and Seminar Information The seminar will start promptly at 8: Liquidity risk, funding risk, credit risk and a brief discussion of Mark-to-Market accounting. What futures contracts are, and why and how they evolved. How cash-settled energy futures contracts are electronically traded on the ICE Futures Exchange and why the crude oil futures contract has been wildly successful.
Futures-related account maintenance, margin deposits, clearing and cash management issues. What basis is, and what the different types of price spreads are. What basis risk is, and how it can destroy your futures hedge. How traders "basis trade" and why it works. Day Two The fundamentals of fixed-for-floating swaps, basis swaps, exchange indexed swaps, and contracts-for-differences.
How over-the-counter dealers and institutional energy brokers operate. The difference between financial and physical basis "fin" and phys". Why so many industry participants use energy fundamentals futures options trading deals. What EFP's are, and how and why this powerful tool is used by sophisticated traders.
How the wholesale energy trading equation is defined, and what its implications are. How this equation underlies the structure of energy trading books. The difference between exchange-traded, over-the-counter and physical energy options. What American, European and Asian style options are. How to create price caps and collars with exchange-traded options. How to calculate annualized volatility and why the BSM does not accurately price energy and electricity options.
What the option Greeks are, and the basic concept of delta hedging. How to buy and sell volatility. Two examples of structured energy transactions.
Grand Hyatt Seattle- Downtown State: Energy fundamentals futures options trading States Event type: Training Course Event code: