|
This popular and comprehensive two-day program is the perfect way for natural gas, electric power and oil industry professionals to acquire a solid understanding of energy futures, options and derivatives.
Day 1:
The seminar begins with an overview of commodity markets, price risk and the basics of energy trading and then moves on to explain what energy futures contracts are and how they evolved; how futures contracts are traded and how NYMEX operations work. The seminar then addresses futures-related account maintenance, margin deposits and cash management issues; how buyers and sellers can hedge with futures contracts; what basis and price spreads are; what basis risk is and how it can destroy a futures hedge; and what basis trading is and why it works.
Day 2:
The second day of the seminar covers commodity swaps and contracts-for-differences; how over-the-counter dealers, institutional energy brokers and electronic exchanges operate; the difference between financial and physical basis ("fin" and "phys"); trigger deals; What EFPs are and why they are used by sophisticated traders; what the wholesale energy trading equation is and what its implications are; and the basic structure of energy trading books and the basics of mark-to-market accounting. The last 3 hours of the seminar address puts, calls and basic option terminology, what the difference is between exchange-traded, over-the-counter and physical energy and electricity options; what American, European and Asian options are; how to create price caps and collars with exchange-traded options; how to calculate annualized volatility and why the BSM does not accurately price energy and electricity options; what the option Greeks are and how to delta hedge; how to buy and sell volatility. The seminar will conclude with an example of a basic structured transaction if time permits. (See seminar agenda below.)
Typical attendees:
Energy and electric power executives; traders; marketing, sales, purchasing & risk management personnel; accountants; trading support staff; auditors;
attorneys; government regulators; plant operators; engineers and corporate planners. (Ask for our list of client references.)
Learn:
- The terminology, concepts and mechanics of energy trading.
- What futures contracts, options and derivatives are, and how these financial instruments are used to hedge price risk.
- How futures contracts trade, and how the NYMEX operates.
- What basis risk is, and how it can destroy a futures hedge.
- How basis trading works, and why it's important to understand.
- What commodity swaps are, and what their advantages and disadvantages are versus futures contracts
- How over-the-counter dealers, brokers and electronic exchanges operate.
- The difference between financial and physical basis is, and why it matters.
- What EFPs are, and why they are used by sophisticated traders;
- What the wholesale energy trading equation is, and what its implications are to trading and to the dealer book.
- The terminology, concepts and mechanics of energy and electricity options.
- How to use energy options to create price caps, price floors and "no-cost" collars.
- What the option Greek letters mean, and how to delta hedge.
- How to calculate annualized volatility, and the basics of option pricing
- How to buy and sell volatility.
- How over-the-counter options can be used to create structured transactions.
Seminar Price:
The price for this two-day seminar is $1,395. Additional attendees, subsequent seminars, and government employees receive a 10% discount. Bring 4 or more attendees and receive a total 20% discount on all seminars attended. Register Online
Your Instructor:
John Adamiak is President of PGS Energy Training and has 20 years experience in the energy and electric power industries including 9 years of actual trading
experience. He has structured numerous transactions and will use this knowledge to provide you with many real-world insights and perspectives. Before founding PGS in 1990, John spent 9 years at The Consolidated Natural Gas
Company (CNG) where he traded natural gas and conducted strategic studies for the executive office.
Return to the top of the page
|
