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Week 1: Financial markets are a risk transfer mechanism
- Meet the team and learn basic financial terms
- Understand how industries use financial markets for managing risk
- Learn about central bank actions and the impact of speculation in markets
Week 2: Financial derivatives & structured products
- Learn about financial derivatives and how they work
- Understand structured products and how they are used
- Discover where trading happens and common market practices
Week 3: Directional & non-directional payoff diagrams
- Learn how to price options and understand their value
- Understand payoff diagrams to see potential gains or losses
- Study different strategies for trading, both with and without market direction predictions
Week 4: Understanding institutional activity
- Learn how big institutions trade and affect the market
- Understand calendar spreads and forward curves in trading
- Study strategies that don't rely on market direction and how to create custom derivatives
Week 5: Approach & tools - Private Traders Vs Hedge Funds
- Learn about risk, probabilities, and how faulty assumptions affect trading decisions
- Study advanced foreign exchange concepts
- Explore options & advanced derivative concepts
Week 6: Deep dive into frequently used first-order Greeks
- Learn about Delta and delta hedging
- Study Vega trading & hedging strategies
- Understand how maturity and volatility impact options trading and strategies
Week 7: Risk
- Learn how to manage risk in trading
- Understand market volatility and its effects
- Compare professional trading to retail trading, and learn about performance bond systems (SPAN and SPAN 2)
Week 8: Option pricing
- Learn how options trading works
- Understand models used to price options
- Study advanced option pricing concepts and practical tools for trading
Week 9: Bringing it all together – Part 1 of 2 (Oil example)
- Learn about oil supply and demand from the EIA and global oil consumption indicators
- Understand investor positioning in oil futures and how CVOL affects oil and energy prices
- Study oil futures charts, and learn about weekly call spreads for oil futures
Week 10: Bringing it all together – Part 2 of 2 (Gold example)
- Learn the importance of gold and its history in money systems
- Understand how the U.S. dollar, real yields, investor sentiment, and central bank policies affect gold prices
- Analyze gold with ratios to stocks, real estate, and oil, and explore future market trends and trading strategies
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