Introduction to Options
- You will understand the roles of specialist, floor traders, and quants.
- You will have some suggestions as to a the best option book to read to get a floor trader's perspective on options.
- You'll have an idea of what you will learn from the Introduction to Options Course!
- Floor Trader
- Market Maker
Options are ancient financial tools that helped build the very foundation of our modern, global economy. Far from being mysterious “black-box” weapons of mass destruction, options are useful tools we are accustomed to using every day.
- teaches you the characteristics that all options share,
- offers a working definition of options,
- compares options to common financial tools,
- reviews the history of options as financial instruments, and
- explains the various perspectives of option players.
The snippet from the video you see above is from the lesson “Different Option Perspectives” and talks about one class of option experts that we call “Inventoriers.”
We introduce a bit of option jargon in this course and even touch on the topic of exotic OTC options, but our overall goal is to give you a good perspective on what role options have played and continue to play in the world of international trade and finance. No matter your view of options going in, after completing this course, your appreciation for and understanding of these peerlessly flexible financial tools is guaranteed to deepen.
- Video Transcript and Vocabulary Definitions
- Lesson Instructions and Notes on Quizzes
- Sheldon Natenberg’s Option Volatility and Pricing (Amazon)
- John Hull’s Options, Futures and Other Derivatives (10th Edition) (Amazon)
- Paul Wilmott’s Paul Wilmott on Quantitative Finance – 3-Volume Set (2nd Edition) (Amazon)
- Erik’s The Intelligent Option Investor (Amazon)