Video Library

Synthetics

Due to their versatility, options can be combined in any number of ways, including creating a strategy synthetically by combining two separate strategies. For example, long stock can be replicated by purchasing a call and selling a put of the same strike and expiration. This section identifies the various combinations of calls, puts, and stock to create synthetic positions.

Theoretical Option Pricing

This webinar takes the topic of options pricing to the next level. It discusses the Black-Scholes and Cox-Ross-Rubenstein pricing models and how an investor can utilize the OIC Options Calculator as a resource. It also touches on the put-call parity and understanding volatility skew.

(7:32) - Option Pricing Models
(12:00) - Black-Scholes Model
(15:24) - OIC Options Calculator
(19:40) - Put Call Parity
(22:37) - Arbitrage
(27:55) - Synthetics
(28:30) - Reverse Conversion
(40:38) - Volatility Skew