1.

Introduction

1.1 Indian Derivatives Market: An Overview

1.2 What are Derivatives?
1.3 Evolution of Derivatives Market
1.4 Types of Derivatives

2. Understanding Options

2.1 Options: An Overview

2.2 Types of Options
2.3 Advantages of Options
2.4 Trading System
2.5 Procedure for Margin Collection
2.6 Types of Orders
2.7 Settlement Schedule for Option Contracts
2.8 Settlement Mechanism
2.9 Writing of Options

3. Option Trading

3.1 Market-wide Limits

4. Price Index

4.1 What is Index?

4.2 Eligibility Criteria of Indices
4.3 Construction of Index
4.4 Desirable Attributes of an Index

5. Pricing Of Options

5.1 Black-Scholes Option Pricing Model

5.2 Pricing of Equity Options
5.3 Pricing of Options on Dividend Paying Scripts
5.4 Binomial Model of Option Pricing
5.5 Pricing of Binomial Put Option
5.6 Binomial Multiple Period Model
6. Strategic Derivative Tools

6.1 Put-call Parity

6.2 PC Ratio
6.3 Weighted PC Ratio
6.4 Volume PC Ratio
6.5 Tools to Measure Market Sentiment

7. Volatility

7.1 Types of Volatility

7.2 Estimating Volatility
7.3 Estimating Historical Volatility
7.4 Factors Affecting the Computation of Historical Volatility
7.5 Implied Volatility
7.6 Volatility Smile
7.7 GARCH
7.8 Impacts of Implied Volatility and Underlying Asset Price on Purchase of Options
7.9 Volatility Trading
7.10 NSE Volatility Index
7.11 Behavioral Study of Nifty Options Distress
7.12 Impacts of Events on Volatility-A Case Study
7.13 Comparative Study of the Behavior of Nifty and IT Stocks During an Event
7.14 Impact of Quarterly on Stock Futures
7.15 Volatility Skew
7.16 Stochastic Volatility
7.17 Volatility Arbitrage
7.18 Volatility Change

8. Option Greeks

8.1 Delta
8.2 Gamma
8.3 Vega
8.4 Theta
8.5 Rho
9. Option Trading Strategies

9.1 Advantages of Strategies

9.2 Buying Put Option
9.3 Bear Spread with Puts
9.4 Long Put Ratio Spread
9.5 Bear Spread with Call
9.6 Synthetic Short
9.7 Short Put Ladder
9.8 Long Combo
9.9 Long Call Christmas Trees
9.10 Short Put Albatross
9.11 Short Straddle versus Put
9.12 Short Strip with Calls
9.13 Long Guts
9.14 Long Call Ladder
9.15 Long Iron Butterfly
9.16 Long Put Spread versus Short Call
9.17 Basic Option Strategies
9.18 Trading Strategy Adopted by Nick Leeson
9.19 Short Straddle
9.20 Long Straddle
9.21 Covered Call Writing
9.22 Probability
9.23 Spread Trading
9.24 Contango and Backwardation
9.25 Trading Strategies with Long -Term Options
9.26 Portfolio Hedging by Call Writing Portfolio Hedging Through Delta Hedge
9.27 Diagonal Spread

10. Market Information

10.1 Introduction

11. Risk In Derivatives

11.1 Risk in Options
11.2 Is Writing Options a High Risky Strategy?
11.3 Classification of Risks
11.4 Elimination of Market Risk through Hedging

12. Accounting And Taxation Of Option Trading

12.1 Accounting Norms for Equity and Index Options

12.2 Charges in F&O Segment
12.3 Taxation of Derivatives
12.4 Income Tax