Derivatives - Options & Futures from Coursera

While investing and trading in the options market may seem somewhat more daunting than other asset classes such as stocks, bonds, exchange-traded funds, currencies and commodities, you’ll ultimately find that their complexity can be boiled down to simple concepts you’ll be able to understand and use the more you’re exposed to, and have hands-on experience with the material. Our aim is for you to acquire these skills, as well as the know-how, to invest and trade in these often-complex financial instruments.

We'll explore the mechanics of futures market, where we’ll introduce you to some of the risks faced by investors in the futures market, how certain of those risks are mitigated, as well as the difference between spot and forward prices, and contango and backwardation. We’ll also provide you with other insights about the mechanics of trading futures, including the roles of commoditized contracts, as well as margin requirements.

Students may also further their involvement with this material by opening a free demo Trader Workstation Paper Trading account, enabling them to enjoy a hands-on experience in a safe, simulated trading environment, while being fully immersed in the fundamentals that underpin the capital markets.

Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901 or copy and paste this link into your browser:

http://www.optionsclearing.com/about/publications/character-risks.jsp

Multiple leg strategies, including spreads, will incur multiple commission charges.

What's inside

Syllabus

All About Options

Overview of options, which includes: Distinguishing between call and put options; Identifying the components of an options contract on a trading platform; Making certain decisions in the options market as a contract writer or owner; Viewing different stock options positions; Examining whether a given position is in- or out-of-the-money and Understanding some of the benefits and critical risks faced by equity options traders. Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901 or copy and paste this link into your browser: http://www.optionsclearing.com/about/publications/character-risks.jsp.

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Read about what's good

what should give you pause

and possible dealbreakers

Incorporates several different perspectives and strategies, including calls, puts, and spreads, offering a comprehensive approach to understanding options trading

Designed for those with prior knowledge of investing and trading, this course guides learners through more advanced concepts like options pricing and the mechanics of futures markets

Taught by instructors with extensive industry experience from reputable institutions, this course provides a high level of credibility and domain expertise

Offers practical examples and hands-on experience through a simulated trading platform, enhancing the learning process and skill development

Utilizes multiple modes of learning, including videos, readings, discussions, and interactive materials, to cater to diverse learning styles and preferences

Teaches fundamental concepts and strategies that are highly relevant to the financial industry, preparing learners for real-world applications

Reviews summary

Comprehensive introduction to options & futures

According to students, this course provides a solid foundation in options and futures fundamentals, making complex topics like The Greeks and market mechanics much clearer. Learners particularly appreciate the practical demonstrations using IBKR's Trader Workstation, which helps bridge theory with real-world application. While many find it an excellent starting point and praise its clear explanations and focus on risk management, some more experienced traders noted it felt too basic and wished for more advanced strategies. Overall, it is highly recommended for those new to derivatives or seeking a comprehensive introduction.

Provides a strong starting point for new derivative traders.

"Fantastic course for anyone looking to enter the world of options and futures. Highly recommend for beginners."

"I found it very basic; if you already know a bit about options, this won't add much."

"It lays a groundwork but doesn't delve deeply into advanced topics or real-world complex scenarios, which I hoped for."

Practical demonstrations using Trader Workstation are very helpful.

"The IBKR Trader Workstation demos are very useful for practical application. I feel much more confident now."

"The demos on Trader Workstation were a huge plus. I appreciated the emphasis on risk."

"I found IBKR's integration seamless; it helped me get a hands-on experience in a simulated trading environment."

Excellent for demystifying complex derivatives concepts.

"Excellent course for understanding options and futures fundamentals. The instructor explains complex topics clearly."

"Good overview, especially for beginners. The "Greeks" section was well-explained."

"A truly comprehensive introduction! From market mechanics to basic strategies, everything is covered."

Some parts feel rushed or overly theoretical, lacking advanced detail.

"Some parts felt a bit rushed, and I wished there were more in-depth examples beyond the basic strategies."

"I found some of the explanations a bit dry and heavily theoretical at times."

"I found too much theory, not enough practical application for real trading, and was disappointed with the lack of advanced strategies."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Derivatives - Options & Futures with these activities:

Watch video tutorials on options trading

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Watching video tutorials on options trading can be a great way to learn about the basics of options trading. These tutorials can provide you with a visual explanation of how options work and how to use them to trade.

Browse courses on Options Trading

Show steps

Find a video tutorial on options trading.
Watch the video tutorial.
Take notes on the key concepts.

Attend a workshop on options trading

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Attending a workshop on options trading can help you learn about the basics of options trading from experienced traders. This can help you develop your trading skills and knowledge.

Browse courses on Options Trading

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Find a workshop on options trading.
Register for the workshop.
Attend the workshop.
Take notes on the key concepts.

Practice using the Black-Scholes model

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The Black-Scholes model is a fundamental tool for pricing options. Practicing using this model will help you develop a deeper understanding of how options are priced.

Browse courses on Black-Scholes Model

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Find a practice problem that involves using the Black-Scholes model.
Solve the problem using the Black-Scholes model.
Compare your solution to the correct answer.

Four other activities

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Practice using the Greeks

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The Greeks are a set of metrics that measure the risk and sensitivity of options to changes in various factors. Practicing using the Greeks will help you develop a deeper understanding of how options behave in different market conditions.

Browse courses on Risk Measures

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Read a tutorial on the Greeks.
Find a practice problem that involves using the Greeks.
Solve the problem using the Greeks.
Compare your solution to the correct answer.

Develop a trading plan

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Developing a trading plan will help you define your trading goals, strategies, and risk tolerance. This will help you make more informed trading decisions and avoid costly mistakes.

Browse courses on Trading Strategies

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Define your trading goals.
Identify your trading strategies.
Determine your risk tolerance.
Write your trading plan.

Write a blog post about options trading

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Writing a blog post about options trading can help you solidify your understanding of the concepts of options trading. It can also help you develop your writing and communication skills.

Browse courses on Options Trading

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Choose a topic for your blog post.
Research your topic.
Write your blog post.
Publish your blog post.

Mentor a new options trader

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Mentoring a new options trader can help you reinforce your understanding of the concepts of options trading. It can also help you develop your leadership and communication skills.

Browse courses on Options Trading

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Find a new options trader who is willing to be mentored.
Develop a mentoring plan.
Meet with your mentee regularly.
Provide your mentee with guidance and support.

Career center

Learners who complete Derivatives - Options & Futures will develop knowledge and skills that may be useful to these careers:

Hedge Fund Manager

A Hedge Fund Manager is a professional who manages a hedge fund, which is a type of investment fund that uses advanced investment strategies to generate returns for investors. This course "Derivatives - Options & Futures" can be useful for Hedge Fund Managers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Hedge Fund Managers to develop more sophisticated trading strategies.

See salaries and explore the career path for Hedge Fund Manager

Quantitative Analyst

A Quantitative Analyst is a professional who uses mathematical and statistical models to analyze financial data. They develop and implement trading strategies, and they may also manage portfolios of investments. This course "Derivatives - Options & Futures" can be useful for Quantitative Analysts because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Quantitative Analysts to develop more sophisticated trading strategies.

See salaries and explore the career path for Quantitative Analyst

Commodity Broker

A Commodity Broker is a professional who buys and sells commodities, such as oil, gas, and metals. They typically work for a brokerage firm, and they may also provide advice to clients on commodity investments. This course "Derivatives - Options & Futures" can be useful for Commodity Brokers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Commodity Brokers to better understand the risks and rewards of different trading strategies.

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Trader

A Trader is a professional who buys and sells stocks, bonds, or other financial instruments for the purpose of making a profit. This course "Derivatives - Options & Futures" can be useful for Traders because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Traders to better understand the risks and rewards of different trading strategies.

See salaries and explore the career path for Trader

Financial Analyst

A Financial Analyst is a professional who provides investment advice and guidance to individuals and organizations. They analyze financial data to make recommendations on investments, and they may also manage portfolios of securities. This course "Derivatives - Options & Futures" can be useful for Financial Analysts because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Financial Analysts to make more informed decisions about investments and to better manage portfolios.

See salaries and explore the career path for Financial Analyst

Investment Banker

An Investment Banker is a professional who helps companies raise capital by issuing stocks or bonds. They also provide advice on mergers and acquisitions. This course "Derivatives - Options & Futures" can be useful for Investment Bankers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Investment Bankers to better understand the risks and rewards of different investment strategies.

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Compliance Officer

A Compliance Officer is a professional who ensures that a company complies with all applicable laws and regulations. They may also develop and implement compliance policies and procedures. This course "Derivatives - Options & Futures" may be useful for Compliance Officers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Compliance Officers to better understand the risks associated with these markets and to ensure that companies are complying with all applicable laws and regulations.

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Private Equity Investor

A Private Equity Investor is a professional who invests in private companies. They typically invest in companies that are not publicly traded, and they may also provide guidance and support to these companies. This course "Derivatives - Options & Futures" may be useful for Private Equity Investors because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Private Equity Investors to better understand the risks and rewards of different investment strategies.

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Portfolio Manager

A Portfolio Manager is a professional who manages a portfolio of investments on behalf of clients. They make decisions about which investments to buy and sell, and they monitor the performance of the portfolio. This course "Derivatives - Options & Futures" may be useful for Portfolio Managers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Portfolio Managers to make more informed decisions about investments and to better manage portfolios.

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Venture Capitalist

A Venture Capitalist is a professional who invests in early-stage companies that have the potential for high growth. They typically invest in companies that are not yet profitable, and they may also provide guidance and support to these companies. This course "Derivatives - Options & Futures" may be useful for Venture Capitalists because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Venture Capitalists to better understand the risks and rewards of different investment strategies.

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Actuary

An Actuary is a professional who uses mathematical and statistical methods to assess the financial risks of insurance companies and pension funds. They develop and implement strategies to mitigate risks and to protect these organizations from financial losses. This course "Derivatives - Options & Futures" may be useful for Actuaries because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Actuaries to better understand the risks associated with different investment strategies.

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Financial Advisor

A Financial Advisor is a professional who provides financial advice and guidance to individuals and families. They help clients with a variety of financial matters, such as budgeting, investing, and retirement planning. This course "Derivatives - Options & Futures" may be useful for Financial Advisors because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Financial Advisors to better understand the risks and rewards of different investment strategies.

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Risk Manager

A Risk Manager is a professional who identifies, assesses, and manages risks for an organization. They develop and implement strategies to mitigate risks and to protect the organization from financial losses. This course "Derivatives - Options & Futures" may be useful for Risk Managers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Risk Managers to better understand the risks associated with different investment strategies.

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Data Scientist

A Data Scientist is a professional who uses data to solve business problems. They collect, clean, and analyze data to identify trends and patterns. This course "Derivatives - Options & Futures" may be useful for Data Scientists because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Data Scientists to better understand the financial markets and to develop more sophisticated data-driven models.

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Software Engineer

A Software Engineer is a professional who designs, develops, and maintains software applications. This course "Derivatives - Options & Futures" may be useful for Software Engineers because it provides a strong foundation in the mechanics of options and futures markets. This knowledge can help Software Engineers to develop more sophisticated trading platforms and other financial software applications.

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