The Certified Options Volatility Trading Professional (COVTP) program is a specialized certification designed to equip individuals with advanced knowledge and skills in options volatility trading. Volatility is a key factor in options pricing and trading, and mastering volatility strategies is crucial for success in options trading. The COVTP program offers a comprehensive curriculum covering options pricing models, volatility trading strategies, risk management, and real-world application in options markets.
Certification Program Objectives:
Upon completing the Certified Options Volatility Trading Professional (COVTP) program, participants will be able to:
- Understand Options Volatility: Develop a deep understanding of options volatility, including implied and historical volatility, and their impact on options pricing.
- Master Volatility Pricing Models: Learn to use advanced options pricing models such as Black-Scholes and binomial models to calculate implied volatility and assess options fair value.
- Volatility Trading Strategies: Explore various volatility trading strategies, including straddles, strangles, calendar spreads, and ratio spreads, and when to deploy them.
- Risk Management: Implement effective risk management techniques to protect capital when trading volatile options.
- Real-world Application: Apply volatility trading strategies to real-world options markets, including equity, index, and commodity options.
- Option Greeks and Sensitivities: Understand how option Greeks (Delta, Gamma, Vega, Theta, and Rho) relate to volatility trading and risk management.
- Trading Platforms and Tools: Familiarize yourself with options trading platforms and tools for analyzing and executing volatility-based trades.
- Bachelor’s Degree
- 5 years of relevant work experience
- To be certified as COVTP, student should take up a 1.5 hours online exam conducted by AIBM.
- The qualifying exam would consist of 50 multiple choice questions, testing core certification modules.
- Professionals with relevant experience and other qualifying criteria may be exempted from the examination.
- Options Volatility Fundamentals
- Volatility Pricing Models and Implied Volatility
- Volatility Trading Strategies
- Risk Management in Volatility Trading
* The modules of the certification are constantly updated and are subject to change.
Who Should Do This Certification:
The Certified Options Volatility Trading Professional (COVTP) certification is highly beneficial for professionals and individuals interested in options trading, risk management, and derivatives markets, including:
- Options Traders: Those actively trading options who want to enhance their expertise in volatility-based strategies.
- Financial Analysts: Professionals seeking to expand their knowledge of options volatility and its applications in risk management.
- Hedge Fund Managers: Fund managers looking to employ volatility strategies in their portfolios.
- Quantitative Analysts: Quants interested in modeling and trading options volatility for quantitative trading strategies.
- Risk Managers: Risk professionals responsible for managing options-related risks in financial institutions.
- Investment Advisors: Advisors guiding clients on options strategies and risk management.
- Finance Students: Students studying finance, derivatives, or risk management who want to gain specialized knowledge in options volatility.
- Futures and Options Exchanges: Professionals working in futures and options exchanges seeking advanced training in options volatility.
Earning the COVTP certification demonstrates your mastery of options volatility trading, a valuable skillset in the world of derivatives and financial markets. Whether you’re an experienced options trader or looking to enter the field, this certification equips you with the knowledge and strategies to navigate the complexities of options volatility effectively.