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Advanced Options Markets

I.     Course Prefix/Number: FIS 239

       Course Name: Advanced Options Markets

       Credits: 1 (1 lecture; 0 lab)

II.    Prerequisite

FIS 101

III.   Course (Catalog) Description

Course explores actual market conditions strategies.  Focus is on the relationship of several individual options to others of the same class.  Recommended for students who have an advanced understanding of put and call options. 

IV.   Learning Objectives

By the end of the course, students who complete all work satisfactorily will have a working knowledge of advanced option and trading strategies.

V.    Academic Integrity

Students and employees at Oakton Community College are required to demonstrate academic integrity and follow Oakton's Code of Academic Conduct. This code prohibits:

• cheating,
• plagiarism (turning in work not written by you, or lacking proper citation),
• falsification and fabrication (lying or distorting the truth),
• helping others to cheat,
• unauthorized changes on official documents,
• pretending to be someone else or having someone else pretend to be you,
• making or accepting bribes, special favors, or threats, and
• any other behavior that violates academic integrity.

There are serious consequences to violations of the academic integrity policy. Oakton's policies and procedures provide students a fair hearing if a complaint is made against you. If you are found to have violated the policy, the minimum penalty is failure on the assignment and, a disciplinary record will be established and kept on file in the office of the Vice President for Student Affairs for a period of 3 years.
Details of the Code of Academic Conduct can be found in the Student Handbook.

VI.   Sequence of Topics

A.    What are options?
1.    Concept and Purpose
2.    Terms and definitions
3.    Pricing of options
4.    Potential gains, possible risks
5.    Leverage

B.    Uses of options
1.    Reduce risk
2.    Lock in profits
3.     Hedging

C.    Trading Strategies
1.    Trading plan
2.    Money management
3.    Trading rules

D. Call options
1.    Outright purchase
2.    Naked short sale
3.    Covered write

E.    Call and Put Spreads
1.    Bull Spreads
2.    Bear Spreads
3.    Ratio Spreads
4.    Reverse Ratio Spread (Backspread)
5.    Butterfly Spread
6.    Calendar Spread
7.    Diagonal

F.    Put Options
1.    Concepts of puts
2.    Outright purchase
3.    Naked put sale

G.    Strategies Combining Puts and Calls
1.    Straddle
2.    Strangle
3.    Synthetics

VII.  Methods of Instruction

Lectures, class discussion, readings from handouts, other books, magazines and newspapers, Internet, and computer assisted instruction.

Course may be taught as face-to-face, media-based, hybrid or online course.

VIII. Course Practices Required

Students will be expected to take the initiate to read from outside sources, participate in group discussion, be on time for class, attend regularly, and complete ending exam.

The Oakton Community College Catalog states:

Oakton Community College does not discriminate on the basis of race, color, creed, religion, national origin, disability, age, sex sexual orientation, or marital status in admission to and participation in its educational programs, College activities and services, or employment practices. The College does not tolerate sexual harassment or sexual assault by or of its students or employees.

In keeping with this policy of tolerance and non-discrimination, in this class all of us (myself included) should strive to:

Listen and give careful consideration to all ideas expressed in the class, especially those that are different from our own, without attacking or demeaning the people who hold those views, and avoid using insulting terms or telling offensive jokes when talking to or about individuals or groups.

IX.   Instructional Materials

Note: Current textbook information for each course and section is available on Oakton's Schedule of Classes.

Varies by instructor.

X.    Methods of Evaluating Student Progress

One exam, classroom options trading, attendance and class participation will be evaluated. 

XI.   Other Course Information

A.    On-time class attendance is required. Students must contact the instructor if they cannot be present. Failure to contact the instructor may result in a lower grade.  Please keep in mind we meet only 5 times!

B.    Services available to students: the Learning Center for tutoring, testing, study skills, academic support for non-native students and students with disabilities; Advising and Counseling Center for academic advisement, personal counseling, career exploration, job placement; Health Services; Financial Assistance Office; Library.


If you have a documented learning, psychological, or physical disability you may be entitled to reasonable academic accommodations or services. To request accommodations or services, contact the Access and Disability Resource Center at the Des Plaines or Skokie campus. All students are expected to fulfill essential course requirements. The College will not waive any essential skill or requirement of a course or degree program.