Commodity Price Risk Management 201:

Take a basic knowledge of options from theory to practice and cover everything you need to know to incorporate them into your operation’s risk management. This workshop connects the dots from fundamental information to execution and dives deeper into active position management.

Options Applications and Strategic Adjustments for Volatile Times

  • Anatomy of an Option
    Review of the basic functionality of options as a risk management tool in place of, or in conjunction with, futures. We will explore the factors that contribute to the cost of options and the pros and cons of using them to establish flexible pricing with a cost/benefit balance that matches the needs of a given operation.
  • Core Option Strategies
    We introduce more advanced option strategies and discuss how each can be used to establish the precise risk/return balance that’s right for your operation. You’ll learn how multiple option positions can protect against higher or lower prices, and how to select the right position(s) for your needs.
  • Delta
    Defined as price sensitivity of options relative to movement of futures. Learn how the option premium changes with changes in futures price and how understanding this can fine-tune your application of options strategies.
  • Option Strategy Adjustments
    We’ll illustrate how an active approach to position management can improve long-term outcomes. We explore why and how to make changes to an initial position to address risk or take advantage of opportunities to capture attractive margins as commodity prices change over time.
  • Best Practices of Effective Position Management
    Learn some rules of thumb to help guide your decision-making throughout the life of your hedge to maximize its efficacy and profitability.
  • Applying Concepts Learned
    An interactive price management simulation to reinforce and test new skills. Participants will make several price management decisions over a marketing period and evaluate the resulting effect on net margins.

Registration fee includes breakfasts, lunches and a networking dinner Tuesday night.

Enroll

If you would prefer to enroll by phone,
please call 1.858.354.5699.

Price

$550

Dates & Time

Nov 9th, 9:00 AM – 5:00 PM and
Nov 10th, 9:00 AM – 2:00 PM

Location

CIH Training Center
120 South La Salle Street
Chicago, IL 60603
Nearby hotels

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