1. Intro to Nat Gas Trading & Hedging 2. Option Applications in Energy
September 20-21, 2010 Course 1 — Introduction to Natural Gas Trading & Hedging:
This program provides participants with a comprehensive understanding of the structures that underlie Natural Gas trading. The program begins by examining the dealing process; forward pricing in natural gas markets; and the strategic use of the forward price curve. The role of Swaps and Swaps structures commonly used in today’s trading is explored before a detailed overview of Location and Basis swap trading structures is reached. The second day considers basis trading and the underlying optionality in pipelines, as well as swing swaps and swing swap options on basis. The focus then shifts to consider time spread storage and trading mechanisms. The instruction ends with a session on hedging risk with Natural Gas Futures. The program concludes with a trading simulation that brings all previously discussed trading concepts together in a realistic trading” game.”
September 22-23, 2010 Course 2 — Beyond Essentials: Option Applications in Energy:
This course is appropriate for professionals wishing to obtain a solid practical and conceptual (non-quantitative) understanding of more sophisticated option concepts as they apply specifically to the energy business. Optionality as seen in the energy business is different in many aspects from options on stocks and bonds. Emphasis is placed on the unique dimensions of the energy business and how they influence option valuations and hedge implementation. The program includes a wide array of option structures. These are important for the energy professional, not just because they can represent efficient tools to hedge existing risks. However, more significantly, almost all of these forms of optionality can be found embedded either in energy assets or supply contracts. Awareness of the nature of the risks inherent in these embedded positions and the values associated with them, is critical to efficient management throughout the energy sector.
