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Option Basics and Strategies

Learn definitions and detailed descriptions to better understand what option basics are.

Develop or increase your understanding of the design and structure of exchange-traded and over the counter options. You will get a detailed look at the mechanics of put and call options from both the seller's and the buyer's perspectives. You will learn common option terms, their payoff and profit possibilities, put-call parity, and common option risks. Because a basic understanding of relevant tax rules is required for a complete understanding of the how and why you enter into options, there will be an overview of options taxation. Popular option trading strategies will also be addressed: buying a call, buying a put, selling a call, ratio writing, entering into an equity collar, entering into a cap agreement, and entering into a floor agreement.

Runtime: 91 minutes
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Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

What Is an Option?

  • Defined
  • Buying and Selling Options
  • Option Styles
  • Valuation
  • Trading Markets
  • Risks and Warnings

Common Option Terms

  • Underlying Property
  • Option Premium
  • Strike Price
  • Expiration Date
  • Exercise Date
  • Open Interest
  • Margin
  • Time Value

Call Options

  • Buying and Selling Calls
  • Payoff
  • Diagrams

Put Options

  • Buying and Selling Puts
  • Payoff
  • Diagrams

Put-Call Parity

Tax Overview

  • Options Taxation
  • Qualified Dividends
  • Expire Worthless
  • Exercise
  • Liquidated/Sold/Closed
  • Tax Straddles

Popular Option Strategies

  • Buy a Call
  • Buy a Put
  • Sell a Call
  • Ratio Writing
  • Enter Into an Equity Collar (Buy a Put and Sell a Call)
  • Enter Into a Cap or a Floor
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More Program Information

Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Webinar

This course was last revised on March 19, 2018.

Call 1-866-352-9540 for further credit information.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Audio & Reference Manual

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • GA CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

MP3 Download

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Purchase Options

More Program Information

Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Andrea S. Kramer

McDermott Will & Emery LLP

  • Partner in the international law firm of McDermott Will & Emery LLP based in its Chicago office and is head of its Financial Products, Trading and Derivatives Group
  • Has a sophisticated and unique legal practice that covers all aspects of financial transactions and derivatives, focusing on taxation, regulation, contract design, trading operations, and documentation
  • Addresses issues related to derivative products, hedging, energy trading, and insurance company investment operations; in all these areas, she works with clients to assure compliance with or resolve disputes concerning tax laws, governmental regulation, contract negotiation, trading policies, and risk management objectives
  • With the phased-in implementation of Dodd-Frank, she works closely with clients to assure they comply with the rules that apply to them as swap dealers, major swap participants, commercial end users, or financial end users
  • Works closely with clients to evaluate financial products and transactions subject to Dodd-Frank and European legislative efforts, keeping their boards of directors current as to the effect these changes will have on their operations, existing contractual relationships, and regulatory compliance
  • Actively involved in the design, structure, and tax defense of hedging and risk management programs as well as financial product transactions
  • Named one of the 50 Most Influential Women Lawyers in America by the National Law Journal for her “demonstrated power to change the legal landscape, shape public affairs, launch industries, and do big things”
  • Chambers USA has ranked her as a Leading Individual in Tax for her “expert opinions on the taxation of financial products” and her “expertise in the tax treatment of financial instruments”. The Legal 500 has ranked her as a Leading Lawyer in Tax as “widely recognized as one of our nation’s most important voices in financial market tax policy” and as “the best of class in a generation of lawyers”
  • The Legal 500 also ranked her as a Leading Lawyer in Domestic Tax and in Structured Finance and Derivative Products as “a brilliant tactician and a first-rate legal scholar” who is “detailed and thorough in her legal analysis and advice” and whose “expertise in financial derivatives is outstanding”
  • Wrote Financial Products: Taxation, Regulation, and Design (CCH, 2006), a three-volume, 3,600-page treatise that is supplemented annually
  • As the leading treatise on financial products law, her book has been cited more than 160 times by courts and tax commentators; co-edited and contributed to Energy and Environmental Trading: US Law and Taxation (Cameron, May, 2008), and she co-edited and contributed to Energy and Environmental Project Finance Law and Taxation: New Investment Techniques (Oxford University Press, 2010); has written more than 160 articles on topics including derivatives taxation, operational and reputational risk in trading operations, insurance coverage versus derivatives regulation, energy trading, and corporate governance
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Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Pay once and get a full year of unlimited training in any format, any time!

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Product ID: 401682
Published 2018
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