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Derivatives Markets & Options Pricing Strategies

This course is part of Derivatives Trading & Risk Management Specialization

Instructor: EDUCBA

Included with

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5 modules

Gain insight into a topic and learn the fundamentals.

1 week to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

5 modules

Gain insight into a topic and learn the fundamentals.

1 week to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

What you'll learn

Understand derivatives markets, instruments, and participant roles.
Apply options pricing models and analyze payoff strategies.
Design trading and hedging strategies to manage financial risk.

Skills you'll gain

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Shareable certificate

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Build your subject-matter expertise

This course is part of the Derivatives Trading & Risk Management Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 5 modules in this course

Understand how derivatives markets work and learn how to apply pricing models and options strategies used by financial professionals. Build practical skills to analyze trading opportunities and manage risk effectively.

This course provides a structured introduction to derivatives markets, starting with core concepts, market participants, and essential terminology. You will learn how derivatives are used for hedging, speculation, and financial risk management. You will explore options trading in depth, including call and put strategies, payoff structures, and how traders design positions based on market expectations. The course covers advanced strategies such as straddles, strangles, and butterfly spreads, helping you understand volatility-based trading approaches. You will also examine derivatives market operations, including margin systems and clearing mechanisms, before moving into pricing concepts. Key topics include option valuation using models like Black-Scholes and pricing methods for forwards, futures, and swaps. By the end of the course, you will be able to interpret derivatives contracts, apply pricing models, and design trading strategies with confidence in real financial market environments.

Module details

This module introduces the fundamental concepts of derivatives markets, explaining what derivatives are, why they are used in financial markets, and how different participants interact within these markets. Learners explore the core terminology, types of derivatives, and the role derivatives play in managing financial risk and supporting modern financial systems.

What's included

6 videos4 assignments

6 videosTotal 27 minutes

Learning Objective2 minutes
Introduction Of Derivative5 minutes
Market Participant5 minutes
Types Of Derivative6 minutes
Type Of Derivative- Options4 minutes
Terminologies Of Derivative Market5 minutes

4 assignmentsTotal 60 minutes

Graded - Foundations of Derivatives Markets30 minutes
Course Overview and Core Concepts10 minutes
Participants and Market Structure10 minutes
Options as Key Derivative Instruments10 minutes

This module focuses on the core mechanics of options trading, introducing call and put options and explaining how traders use them to express market views. Learners explore long and short positions, understand option payoffs, and examine how options can be used for speculation and risk management.

What's included

6 videos4 assignments

6 videosTotal 64 minutes

Trading Option - Long Call14 minutes
Trading Option - Short Call9 minutes
Trading Option - Long Put9 minutes
Trading Option - Short Put8 minutes
Option Strategies - Long Straddle15 minutes
Option Strategies - Short Straddle9 minutes

4 assignmentsTotal 60 minutes

Graded - Fundamentals of Option Trading30 minutes
Call Option Trading Strategies10 minutes
Put Option Trading Strategies10 minutes
Introduction to Volatility Strategies10 minutes

This module explores advanced option strategies used by traders to manage market volatility and structure specific payoff outcomes. Learners examine strategies such as straddles, strangles, and butterfly spreads while understanding how payoff diagrams help evaluate strategy performance under different market conditions.

What's included

6 videos4 assignments

6 videosTotal 66 minutes

Option Strategies - Short Straddle Graph7 minutes
Option Strategies - Long Strangle15 minutes
Option Strategies - Short Strangle12 minutes
Option Strategies - Long Call Butterfly19 minutes
Meaning Of Short Call Butterfly Strategy6 minutes
Short Call Butterfly7 minutes

4 assignmentsTotal 60 minutes

Graded - Advanced Option Strategies30 minutes
Understanding Straddle Strategy Payoffs10 minutes
Strangle Strategies and Market Outlook10 minutes
Butterfly Strategy Concepts10 minutes

This module explains the operational structure of derivatives markets and introduces the fundamentals of derivative pricing. Learners study margin requirements, clearing mechanisms, and the foundational concepts behind pricing models used to evaluate derivative contracts.

What's included

6 videos4 assignments

6 videosTotal 33 minutes

Option Margin1 minute
Derivatives - Conclusions3 minutes
Introduction to Derivatives7 minutes
Option Moneyness Concepts8 minutes
Derivatives Pricing Fundamentals8 minutes
Derivatives Pricing Framework6 minutes

4 assignmentsTotal 60 minutes

Graded - Derivatives Market Operations and Pricing Basics30 minutes
Margin and Market Summary10 minutes
Overview of Derivatives Pricing10 minutes
Foundations of Pricing Models10 minutes

This module examines advanced derivative pricing models and the valuation of complex derivative instruments. Learners explore the Black-Scholes option pricing model, analyze factors affecting option prices, and understand the pricing mechanisms for forwards, futures, and swap contracts used in financial markets.