Overview

Understanding Options Overview

This Understanding Options course provides an overview of options terminology and how options can be used effectively. We explore moneyness, intrinsic vs. extrinsic value, and also show simple hedging strategies. We also look at pay off diagrams and how we can use an option pricing model to determine effective strategies.

Understanding Options Learning Objectives

Upon completing this course, you will be able to: 

  • Define the basic terminology surrounding options such as calls vs. puts, and obligations vs. rights
  • Understand option pay-off profiles and compare them with futures and forwards
  • Interpret time value and intrinsic value and identify the concept of put-call parity
  • Explain the moneyness of an option and evaluate how time and price affect the premium of an option
  • Compare options with simple future/forward hedges alongside examining common option hedges
  • Describe long call and long put hedges and summarize the concept of portfolio protection


Who Should Take This Course?

This Understanding Options course is great for anyone looking to enhance their knowledge of derivatives and options. These tools can be used in careers involving trading and managing the exposure of a portfolio.

Understanding Options

5

Level 3

Approx 2h to complete

100% online and self-paced

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This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Capital Markets & Securities Analyst (CMSA®) Certification

  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side

Financial Planning & Wealth Management (FPWM™) Certification

  • Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
  • Career Prep Financial Planner, Investment Advisor, Portfolio Manager

What Our Members Say

good experience
Basics well presented and explained

venugopal rajamanuri

awesome
I particularly liked the practical aspect of the course using the option strategy modeler.

Derick Twesigye

Amazing
Great Course to understand about Option Mechanics.

Manoj Kumar P

Good primer on options
Good overview of options and their valuation.

Sylvain DAVID

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message.
What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
Are there any additional fees or costs?
None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.
What currency are your courses priced in?
All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
More Questions?
You can view more detailed information through our Help Center or Email us and we'll be happy to answer any of your questions
If you haven’t found your answer from our FAQ, please send us a message.
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