Options & Derivatives
Options and derivatives are complex financial instruments used in various trading and investment strategies. An option gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Derivatives, including futures, forwards, swaps, and options, derive their value from the performance of an underlying entity like an asset, index, or interest rate. These instruments are used for hedging against price fluctuations in an asset, thereby reducing risk, or for speculative purposes to profit from anticipated price movements. They play a crucial role in financial markets by providing additional liquidity, enabling price discovery, and offering mechanisms for risk management.
Black-Scholes in Python: Option Pricing Made Easy
Unlock the power of the Black-Scholes model with this easy-to-follow Python tutorial. Starting with importing essential libraries, we’ll walk you through defining variables, calculating d1, d2, and deriving both call and put option prices. By 9:41, we deep dive into the intuition behind the Black-Scholes pricing formula. Perfect for finance enthusiasts looking to sharpen their Python skills and understand option pricing!
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💻 *Find the Code Written In this Video Here:* https://ryanoconnellfinance.com/step-by-step-guide-implementing-the-black-scholes-model-in-python/
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Chapters:
0:00 – Import the Neccessary Libraries
1:07 – Define the Variables
3:11 – Calculate d1
4:36 – Calculate d2
4:50 – Calculate Call Option Price
7:29 – Calculate Put Option Price
9:41 – Making Sense of the Black Scholes Pricing Model
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
What is the Binomial Option Pricing Model?
In this comprehensive video, we delve into the intricacies of the Binomial Option Pricing Model, an essential tool for traders and financial analysts to value options. Starting with an introduction to the model, we guide you through constructing a riskless portfolio, calculating the number of long shares, and estimating portfolio value. Learn how to calculate the implied value of a call option, determine probabilities of market moves, and finally discuss the Binomial Option Pricing Model applications to real-world scenarios. Whether you’re a beginner or an expert in finance, this video serves as a complete walkthrough for understanding and utilizing the Binomial Option Pricing Model effectively.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
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Chapters:
0:00 – Introduction to the Binomial Option Pricing Model
2:09 – Constructing a Riskless Portfolio
4:10 – Calculating the # of Long Shares in Portfolio
6:35 – Calculate Portfolio Value in 1 Year
8:13 – Calculate the Implied Value of a Call Option
9:17 – Calculate Probabilities of Up & Down Moves
11:40 – Value Call Option Using Binomial Option Pricing Model
12:24 – Value Put Option Using Binomial Option Pricing Model
14:02 – The Binomial Option Pricing Model in the Real World
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Log Returns in Finance: Continuous Compounding and Euler’s Number (e) Explained
Join Ryan O’Connell, CFA, FRM, as he delves deep into the fascinating world of log returns in finance, shining a spotlight on Euler’s number (e) and the intricacies of continuous compounding. From understanding the basics of simple annual compounding to mastering the complexities of logarithmic returns in Excel, this comprehensive guide has you covered. Whether you’re a finance professional, student, or enthusiast, this video is your key to unlocking the power of ‘e’ in the financial realm. Don’t miss out on this essential tutorial on continuous compounding and the magic of log returns!
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💾 Download Free Excel File:
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Chapters:
0:00 – Simple Annual Compounding of Interest
2:26 – Monthly Compounding of Interest
4:37 – Continuous Compounding (Euler’s Number – e)
7:36 – Logarithmic Returns Explained
9:57 – Logarithmic Returns in Excel
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Futures Contracts Explained: An Insight into Futures and Forwards
Join Ryan O’Connell, CFA, FRM, as he demystifies the world of financial derivatives in ‘Futures Contracts Explained: An Insight into Futures and Forwards.’ This comprehensive video guide provides a clear, easy-to-understand comparison between futures and forward contracts, highlighting key aspects like standardization, daily settlements, regulation, and liquidity. Whether you’re a beginner trying to grasp these complex instruments, or an investor looking to enhance your knowledge, this video is the perfect resource. Don’t forget to like, share and subscribe for more insightful financial content.
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Chapters:
0:00 – Definition of a Futures Contract
0:34 – Example of a Forward Contract
3:06 – Forward Contracts Vs Futures Contracts
3:32 – Futures are Standardized
4:29 – Futures are Settled on a Daily Basis
6:15 – Futures Come in Standard Sizes
7:10 – Futures are Usually Cash Settled
8:00 – Futures are Heavily Regulated
9:06 – Futures are Very Liquid
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Alternative Titles:
“Deciphering Derivatives: A Comparative Guide to Futures and Forward Contracts”
“Unraveling Financial Instruments: The Essential Differences Between Futures and Forwards”
“Demystifying Derivatives: Understanding Futures vs Forward Contracts”
“Futures and Forwards: A Beginner’s Exploration of Two Key Financial Contracts”
“Financial Contracts Uncovered: An Insight into Futures and Forwards”
“Futures vs Forwards: Navigating the Nuances of Financial Derivatives”
“Unveiling the Complexities: A Comprehensive Comparison of Futures and Forward Contracts”
“The ABCs of Futures and Forwards: Simplifying Complex Financial Instruments”
“The Beginners’ Roadmap: Decoding Futures and Forward Contracts”
“A Comparative Dive into Futures and Forwards: Your Guide to Derivative Contracts”.
Forward Contracts Explained in 3 Minutes!
Join Ryan O’Connell, CFA, FRM, as he demystifies the world of Forward Contracts in just 3 minutes! In this concise guide, we’ll cover the definition of a Forward Contract, provide a real-world example, and explain the payoff mechanism. This video is perfect for anyone seeking a quick, clear, and comprehensive understanding of Forward Contracts, whether you’re new to finance or seeking a refresher.
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Chapters:
0:00 – Definition of a Forward Contract
0:35 – Example of a Forward Contract
1:30 – Payoff of a Forward Contract
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Alternative Titles:
“Forward Contracts Explained in 3 Minutes!”
“Fast-Track Finance: Understanding Forward Contracts Quickly”
“3 Minute Guide: Getting Started with Forward Contracts”
“Forward Contracts 101: The Essentials in 180 Seconds”
“Quick Dive: Demystifying Forward Contracts in Just 3 Minutes”
“Time-Saver Tutorial: Forward Contracts Basics”
“Crash Course on Forward Contracts: Everything You Need in 3 Minutes”
“Finance Made Simple: Your 3 Minute Guide to Forward Contracts”
“Speedy Lesson: The ABCs of Forward Contracts”
“Grasp Forward Contracts Fast: The 3-Minute Breakdown”
Black Scholes Option Pricing Model Explained In Excel
Get ready to dive deep into financial modeling with ‘Black Scholes Option Pricing Model Explained In Excel’. This step-by-step tutorial will take you through the entire process, from declaring the Black Scholes inputs, to calculating the critical D1 and D2 values, all the way to valuing both Call and Put options. Plus, we’ll delve into the crucial implications of the Black Scholes Model to give you a comprehensive understanding of this invaluable tool. Join us and enhance your skill set, whether you’re a beginner or just need a refresher on the Black Scholes model in Excel
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/black-scholes-option-pricing-model-excel-workbook/
Chapters:
0:00 – Declare the Black Scholes Inputs
1:46 – How to Calculate D1
2:54 – How to Calculate D2
3:24 – Value a Call Option
5:36 – Value a Put Option
7:51 – Implications of the Black Scholes Model
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC
Call and Put Options Explained: The Ultimate Guide
“Call and Put Options Explained: The Ultimate Guide” is your comprehensive resource for understanding these fundamental trading tools. This video unravels the complexities of both long and short call and put options, illustrating how these payoff diagrams can be used to navigate potential profit and loss scenarios. We dive deep into the practical applications of these strategies in the financial market, demystifying the nuances of long and short positions. Whether you’re a novice or an experienced trader, this guide arms you with the knowledge to effectively strategize and maximize your trading potential.
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📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 – Intro to “Call and Put Option Payoff Diagrams”
0:12 – Call Options Explained
1:11 – Long Call Option: Payoff Diagram
6:04 – Short Call Option: Payoff Diagram
8:54 – Put Options Explained
9:53 – Long Put Option: Payoff Diagram
13:40 – Short Call Option: Payoff Diagram
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Constructing Call and Put Option Payoff Diagrams in Excel
In this comprehensive tutorial, we’ll explore the process of constructing call and put option payoff diagrams using Microsoft Excel. Whether you’re a novice investor or an experienced trader, our step-by-step guide will simplify the complex world of option trading for you. We’ll delve into the nuances of call and put options, their payoff structures, and how to visually represent these in Excel. Tune in to gain valuable insights and boost your trading strategy with the power of Excel!
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👉 https://ryano.finance/cfa
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
💾 *Download the file created in this video free here:*
https://ryanoconnellfinance.com/product/call-and-put-option-payoff-diagram-excel-template/
Chapters:
0:00 – Long Call Option
3:06 – Short Call Option
4:19 – Long Put Option
6:54 – Short Put Option
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Put Options Explained: Short and Long Puts Explained
In “Put Option Diagrams: Short and Long Puts Explained,” we break down the often confusing world of put options. This video provides a comprehensive guide to understanding the payoff diagrams for short and long put options, highlighting potential scenarios of profit and loss. We unravel the complexities of these trading strategies, offering insight into their practical usage in the financial market. Suitable for both novice and experienced traders, this video empowers you with the knowledge to skillfully navigate and capitalize on both short and long put options.
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
Chapters:
0:00 – Put Options Explained
0:51 – Long put option: Payoff Diagram
4:45 – Short put option: Payoff Diagram
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
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