An Intuition-Based Options Primer for Financial Engineering

An Intuition-Based Options Primer for Financial Engineering

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The course includes topics directly relevant to quant job interviews (interview questions videos are included for multiple sections) as well as to graduate studies in financial engineering. It was created by Prof. Dan Stefanica, a best-selling author and educator in financial engineering, and reflects his experience fostering highly successful careers for the graduates of the Baruch MFE program for over 15 years.

Educational requirements: knowledge of calculus and elementary knowledge of probability; programming knowledge not required, but useful.

Who will benefit: the course will prepare for entry level positions interviews and for graduate studies; emphasis is placed on depth of understanding of options trading arbitrage and options valuation models.
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ysun
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Fantastic
Took the course to prepare for interviews, fantastic program!
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dxtr
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Final exam is very interesting and application based
I had a great experience with the course. The graded HWs and the discussion forum were my favourite parts. Professor Rados Radoicic did an amazing job as the TA and grader. I took the course as I wanted to learn about options. I am planning to apply for an MFE and the knowledge gained from the course will be very helpful for my future study and career.
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Ziyuan Kong
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Course exceeded my expectations
"An Intuition-Based Options Primer for Financial Engineering" is a well-designed course that exceeded my expectations in several ways. The TA was particularly responsible and helpful, always available to answer questions and provide guidance. This course not only covered the fundamental concepts of options trading comprehensively but also introduced an alternative way of thinking about options, which broadened my understanding significantly. The curriculum was structured to foster intuitive learning, making complex topics more accessible. Overall, the course provided invaluable insights and practical knowledge that have enhanced my approach to financial engineering.
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xeusclay
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Taking this course has been an incredible journey
Reviewed by Verified Member
Taking this course has been an incredible journey, providing me with a solid foundation in option pricing and the mathematical models involved. Despite having no prior knowledge in this area, I found myself captivated by the principles of arbitrage and the various trading strategies that can be employed using options. The course not only highlighted the ingenuity behind these financial instruments but also showcased the excitement of developing strategies that leverage their unique properties.

One of the most valuable aspects of the course was the instructor's ability to break down the complex Black-Scholes model into its fundamental assumptions and the universal properties of options based on their real-world trading behavior. By connecting the abstract mathematical model with practical applications, the course provided a clear understanding of how options are priced and utilized in financial markets.

Through the course, I gained a deep appreciation for the concept of risk-neutral probability and its role in option pricing. Understanding how to calculate the theoretical value of an option using the Black-Scholes formula and compare it to the market price has equipped me with the tools to identify potential arbitrage opportunities. Moreover, learning about the Greeks (delta, gamma, theta, vega, and rho) and their implications for option sensitivity has been invaluable in developing effective trading strategies.

The course also introduced me to various option trading strategies, such as covered calls, protective puts, straddles, and spreads. Analyzing these strategies and their risk-reward profiles has provided me with a framework for constructing portfolios that align with specific market outlooks and risk tolerances. I am particularly intrigued by the potential of using options for hedging purposes and generating income through strategies like writing covered calls.

Overall, this course has ignited my passion for financial engineering, particularly in the realm of option trading. The knowledge and intuition I have gained have laid a solid foundation for further exploration and practical application. I am eager to delve deeper into the world of options, enhancing my understanding of advanced pricing models, exotic options, and the integration of options into comprehensive trading strategies. With the tools and insights provided by this course, I feel well-prepared to navigate the dynamic landscape of option trading and contribute to the field of financial engineering.
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E
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Beyond my expectation
Well designed course. TA is responsible and helpful. This course is beyond my expectation and provided alternative way of thinking about options.
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pierreyvessojic
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Best Options course online
Reviewed by Verified Member
Probably the best course on options available online, it covers many of the things needed to do well in the finance portion of interviews, such as convexity/price arbitrages, greeks, implied volatility, option trading strategies, etc. Homeworks can get quite challenging at times, but the T.A. Rados is always there, answers all questions in depth and is very knowledgeable. The course also has some questions that require coding, so it can be a good refresher if you haven't coded in a while. All in all, I definitely recommend the course for everyone, whether you are an MFE applicant or preparing for job interviews.
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heming_huang
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Provide deeps insights and intuition behind the options
I really like the structure of the course, especially the detailed proofs in the additional material provided by Dan. I really like the part we delved into the asymptotic of BS model parameters, which in turn provided me insights and intuition behind the options. Rados is really active and timely in providing me feedback and answers to the questions I had! Many thanks to everyone who has been involved in organizing the course.
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D
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Great course!
A great course created by Professor Dan and the Quantnet Team. Professor Rados was really helpful through the course.
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Jiehou
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An excellent and memorable course.
I have learned a range of things about option concepts, pricing, trading, etc. from this course and have been able to integrate this knowledge in a step-by-step training program. I think the pace and content of this course is excellent. What impressed me the most was some of the arbitrage strategies on convex and the derivation of the Black-Scholes pricing model from the most basic expectation and risk-neutral principles. All in all, an excellent and memorable course.
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Paul Lopez
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Wide variety of interview questions
Reviewed by Verified Member
I quite liked the course overall. My previous experience in the past has always been with numerical methods for pricing and risking options in a black scholes or similar framework, and I really just wanted an intuitive look at the different pieces that make up options. This intuitive framework with focusing on put call parity and asymptotic analysis as you take certain parameters to extreme values is exactly what I was looking for. I think the wide variety of interview questions alone makes the course extremely important and valuable for students and experienced professionals alike.
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