Vskills certification for Options Trader Professional assesses the candidate as per the company’s need for options and futures trading. The certification tests the candidates on various areas in options basics, market-wide limits, price index, Black-Scholes option pricing model, PC ratio, strategic derivative tools, volatility, Delta, Options Trader strategies, long combo, long straddle, derivative risks, accounting and taxation of option trading

1. Certified Options Trader
VS-1136

2. Certified Options Trader
www.vskills.in
CCCCertifiedertifiedertifiedertified OptionsOptionsOptionsOptions TraderTraderTraderTrader
Certification CodeCertification CodeCertification CodeCertification Code VS-1136
Vskills certification for Options Trader assesses the candidate as per the company’s need
for options and futures trading. The certification tests the candidates on various areas in
options basics, market-wide limits, price index, Black-Scholes option pricing model, PC
ratio, strategic derivative tools, volatility, Delta, option trading strategies, long combo, long
straddle, derivative risks, accounting and taxation of option trading
Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?
This Course is intended for professionals and graduates wanting to excel in their chosen
areas. It is also well suited for those who are already working and would like to take
certification for further career progression.
Earning Vskills Options Trader Certification can help candidate differentiate in today's
competitive job market, broaden their employment opportunities by displaying their
advanced skills, and result in higher earning potential.
Who willWho willWho willWho will benefit from taking this certification?benefit from taking this certification?benefit from taking this certification?benefit from taking this certification?
Job seekers looking to find employment in options and futures trading departments of
various companies, students generally wanting to improve their skill set and make their CV
stronger and existing employees looking for a better role can prove their employers the
value of their skills through this certification.
Test DetailsTest DetailsTest DetailsTest Details
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%)
There is no negative marking in this module.
Fee StructureFee StructureFee StructureFee Structure
Rs. 4,500/- (Includes all taxes)
Companies that hire VskillsCompanies that hire VskillsCompanies that hire VskillsCompanies that hire Vskills CertifiedCertifiedCertifiedCertified OptionsOptionsOptionsOptions TraderTraderTraderTrader
Options Traders are in great demand. Companies specializing in options or futures trading
are constantly hiring skilled Options Traders. Various public and private companies also
need Options Traders for their options and futures trading departments.

3. Certified Options Trader
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Table of ContentsTable of ContentsTable of ContentsTable of Contents
1.1.1.1. IntroductionIntroductionIntroductionIntroduction
1.1 Indian Derivatives Market: An Overview
1.2 What are Derivatives?
1.3 Evolution of Derivatives Market
1.4 Types of Derivatives
2.2.2.2. UnderstandingUnderstandingUnderstandingUnderstanding OptioOptioOptioOptionsnsnsns
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
3.3.3.3. Option TradingOption TradingOption TradingOption Trading
3.1 Market-wide Limits
4.4.4.4. Price IndexPrice IndexPrice IndexPrice Index
4.1 What is Index?
4.2 Eligibility Criteria of Indices
4.3 Construction of Index
4.4 Desirable Attributes of an Index
5.5.5.5. Pricing Of OptionsPricing Of OptionsPricing Of OptionsPricing 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
6.6.6.6. StrategicStrategicStrategicStrategic DDDDerivative Toolserivative Toolserivative Toolserivative 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

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7.7.7.7. VolatilityVolatilityVolatilityVolatility
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
8.8.8.8. Option GreeksOption GreeksOption GreeksOption Greeks
8.1 Delta
8.2 Gamma
8.3 Vega
8.4 Theta
8.5 Rho
9.9.9.9. Option Trading StrategiesOption Trading StrategiesOption Trading StrategiesOption 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

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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
10.10.10.10. Market InformationMarket InformationMarket InformationMarket Information
10.1 Introduction
11.11.11.11. Risk In DerivativesRisk In DerivativesRisk In DerivativesRisk 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
12.12.12.12. Accounting And Taxation Of Option TradingAccounting And Taxation Of Option TradingAccounting And Taxation Of Option TradingAccounting 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

6. Certified Options Trader
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Sample QuestionsSample QuestionsSample QuestionsSample Questions
1.1.1.1. Standardized futures contracts exist for all of the following underlying assetsStandardized futures contracts exist for all of the following underlying assetsStandardized futures contracts exist for all of the following underlying assetsStandardized futures contracts exist for all of the following underlying assets
except:except:except:except:
A. Stock indexes.
B. Treasury bonds.
C. Gold.
D. Common stocks.
2222.... Which one of the following actions will offset a longWhich one of the following actions will offset a longWhich one of the following actions will offset a longWhich one of the following actions will offset a long position in a futures contractposition in a futures contractposition in a futures contractposition in a futures contract
that expires in June?that expires in June?that expires in June?that expires in June?
A. Sell a futures contract that expires in June.
B. Hold the futures contract until it expires.
C. Sell any futures contract, regardless of its expiration date.
D. Buy any futures contract, regardless of its expiration date.
3333.... Which of the following does the most to reduce default risk for futures contracts?Which of the following does the most to reduce default risk for futures contracts?Which of the following does the most to reduce default risk for futures contracts?Which of the following does the most to reduce default risk for futures contracts?
A. High liquidity.
B. Flexible delivery arrangements.
C. Flexible delivery arrangements.
D. Marking to market.
4444.... Which of the following has theWhich of the following has theWhich of the following has theWhich of the following has the right to sell an asset at a predetermined price?right to sell an asset at a predetermined price?right to sell an asset at a predetermined price?right to sell an asset at a predetermined price?
A. A call buyer.
B. A put buyer.
C. A put writer.
D. A call writer.
5555.... Which of the following is most similar to a stock broker?Which of the following is most similar to a stock broker?Which of the following is most similar to a stock broker?Which of the following is most similar to a stock broker?
A. Futures commission merchant.
B. Local.
C. Pit trader.
D. Floor broker.
Answers: 1 (D), 2 (A), 3 (D), 4 (B), 5 (A)