A Securities Commission CPE-accredited course for Financial Planning Association of Malaysia
Title: How to Invest Sensibly With Options
Date: 15th April 2011
Venue: Gurney Hotel, Penang
To register for Penang,
Date: 20 April 2011
Venue: Dewan Berjaya, Bukit Kiara Equestrian & Country Resort, KL
Instructor: Ms. Wai-Yee Chen
To register for KL,
CE COURSE OUTLINE
Selling or writing options for income is a strategy that is touted by many option operators as a profitable short term trading tool with even “outrageous” promises like several hundred percent of return in the short term. Many unsuspecting investors are attracted to them and then spend thousands of dollars in learning this money-making skill before travelling down the path of trading options without having proper understanding of the inherent risks and some even to disastrous results.
Whilst writing options can be a lucrative money-making tool, so can it be a lethal money-losing vehicle as the inherent gearing in the underlying strategies are extremely high. The purpose of this course is to provide an objective and unbiased learning of these popular options strategies, with not just the money-making strategies being taught but the inherent risks of each and potential pitfalls including mental traps are highlighted with up-front strategies and defenses taught alongside them.
By attending the course, participants will be able to understand:
1. The key concepts in options and the variables that affect them
2. How to use options successfully by taking advantage of its inherent attributes
3. How to de-construct and then construct option strategies to meet objectives/criteria
4. How to determine the variables for each strategy
5. The inherent risks of each strategy and the necessary risk management strategy according to specific risk profile
6. How to apply common option strategies for hedging, building portfolios and selling shares
7. How to manage option positions that do not go according to plan
8. How to establish a workable individual options investment plan
9. Some working knowledge of the Australian stock market and Australian exchange traded options (ETOs)
|| Function/Paper Title
|9.30 – 10.00 am
|10.00 – 10.30 am
||Foundation Building The nine key concepts which forms the foundations in understanding options.
|10.30 – 12.00 pm
||Portfolio Hedging Strategies The required pre-qualifying conditions, the expected outcomes and accompanying risks of each of the first four hedging strategies with index and equities options are expounded respectively. Participants learn how to identify and apply the relevant strategies according to their views, objectives and risk profiles. Use of KLCIO will be discussed.
Breakeven prices, Delta, Perfect hedging, Endowment trap and Capital Gains Tax trap
|12.00 – 12.15 pm
|| Coffee break
|12.15 – 1.00 pm
||What is not Hedging The understanding of when hedging strategies like shorting become aggressive trading strategies.
Risk Margins, Margin Interval Percentage, Impact of volatility
|1.00 –2.00 pm
||Combination and Portfolio Hedging Strategies Advanced hedging strategies like Collar and Ratios are explained and all strategies are pulled together to help participants establish a portfolio approach to hedging to meet cash flow requirements and objectives.
|2.00 – 3.00 pm
|| Lunch break
|3.00 – 4.30 pm
||Portfolio Building Strategies The six portfolio building strategies are expounded. Participants learn how to identify the relevant strategies based on their views of the underlying investment conditions, objectives to be achieved, risk profiles and cash flow requirements.
Eligible collateral, Margin escalation defense strategies, the Aversion trap
|4.30 – 4.45 pm
|| Coffee break
|4.45 – 5.30 pm
||How To Manage Options Portfolio Participants will learn how to manage an options portfolio on an on-going basis and what to do when strategies do not happen according to plan.
| 5.30 – 6.00 pm
||Creating An Options Investment Plan for a Malaysian Investor This will be run like an open forum for participants to share knowledge learn from the course, how they can be applied to the Malaysian conditions in view of what is available to investors locally and overseas. Participants will be encouraged to establish an Options Investment Plan applicable to their individual objectives and risk profile.
Profile of Ms. Wai-Yee Chen
Wai-Yee Chen has been helping investors make sound financial decisions since 1996. She is currently Head of Derivatives and Co-Principal of RBS Morgans Grosvenor in Sydney, a managed office of RBS Morgans, one of Australia’s largest stockbroking and financial planning firm servicing more than 300,000 clients with 500 Advisors and 840 staff, operating from 55 offices in all states and territories.
Wai-Yee is a Certified Practising Accountant, a qualified financial planner with a Diploma in Financial Planning from the Financial Planning Association of Australia, received a Masters in Applied Finance from Macquarie University and holds a Level 2 Derivatives Accreditation from the ASX.
Whilst providing her clients full investment advice from fixed interest products, managed funds to direct shares and derivatives, her unique expertise is in the use of Options to enhance share portfolio returns.
Well-respected by her peers, Wai-Yee shares her knowledge regularly with the wider public by presenting live options commentaries on TV with Sky Business Channel and CNBC and addressing different investor groups at various Expos and Conferences both locally and in Asia. Wai-Yee also lectures in options for Industry Associations like Stockbrokers’ Association of Australia and Financial Planning Associations and is a regular contributor of options articles to leading edge investment magazines like Your Trading Edge and Wealth Creators.
Wai-Yee believes personally tailored option strategies are suitable to all investors, not just traders and high-risk speculators. In her usual clear and simple style of explaining options, Wai-Yee has helped set many investors in the successful journey of embracing options in their investments.
OptionsWise How to invest sensibly, her first book, serves as a step-by-step user manual for the investor who wants a sustainable source of income and a sensible way of investing with options. OptionsWise demonstrates the importance of an investment plan and of managing emotions as well as money. You are invited to visit her blog at www.optionswise.wordpress.com to find out more of her options strategies and ideas.
Wai-Yee’s passion is to help people from all walks of life manage their financial issues and as a result enjoy money and life. Wai-Yee lives in Sydney with her husband and three children.