This will be an individual project. Each student is asked to open a trading account with investopedia. The account will be used to trade mostly in options and implement as many as possible of the strategies and techniques discussed in class. This should provide a real-world experience of how options are used in practice and how different strategies can be used for i) hedging ii) speculation and iii) arbitrage. At the end of the semester a short-written report will be submitted describing the activities and the strategies used. I will demonstrate during our online meetings step by step the opening of the account and how the different strategies can be implemented. This should be a fun project illustrating the joys and pitfalls of options trading. It will also contribute 30% to your final grade
Open a trading account with investopedia.
