Options Trading Simulation
Description of Simulation
Initial parameters
- Transactions on real options classes with an initial portfolio of $100,000.
- To construct the options portfolio, each team must choose eight classes from a list of 20. All selected options classes must be traded.
- Ten trading weeks (from Monday, October 1, 2012 to Friday, November 30, 2012).
Mandatory component
- Each team member must participate in an educational presentation on the Canadian derivatives market, and on the use of trading strategies, to be held on Thursday, September 27, 2012, at 5:00 p.m. at the Auditorium of the Montréal Exchange.
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Each team must execute five pre-defined trading strategies during the ten trading weeks:
- covered call writing
- protective puts
- secured puts
- bullish or bearish spread
- surprise trading strategy to be given at Week 8 (teams will be invited to an educational presentation on the surprise strategy at the Auditorium of the Montréal Exchange on Thursday, November 15, 2012, at 5:00 p.m.; the presence of at least one team member is mandatory)
Winners
The winning team will have accumulated the best return after ten trading weeks, respecting the mandatory components. The winning team will receive a $10,000 prize from the Montréal Exchange during a ceremony at the Auditorium of the Montréal Exchange on Thursday, December 6, 2012.
The winning team will have accumulated the best return after ten trading weeks, respecting the mandatory components. The winning team will receive a $10,000 prize from the Montréal Exchange during a ceremony at the Auditorium of the Montréal Exchange on Thursday, December 6, 2012.
TopList of 20 Options Classes
- Agrium Inc. (AGU)
- Barrick Gold Corporation (ABX)
- Bombardier Inc. (BBD)
- Canadian Natural Resources Limited (CNQ)
- Claymore Natural Gas Commodity ETF (GAS)
- EnCana Corporation (ECA)
- Goldcorp Inc. (G)
- Husky Energy Inc. (HSE)
- iShares S&P/TSX 60 Index Fund (XIU)
- iShares S&P/TSX Capped Financials Index Fund (XFN)
- Lundin Mining Corp. (LUN)
- Manulife Financial Corporation (MFC)
- Potash Corporation of Saskatchewan (POT)
- Research in Motion Limited (RIM)
- Royal Bank of Canada (RY)
- Shoppers Drug Mart (SC)
- Suncor Energy Inc. (SU)
- Teck Resources Limited. Class B (TCK)
- Toronto-Dominion Bank (TD)
- Osisko Mining Corp. (OSK)
Equity Option Strategy Sheets
Writing covered calls
Protective puts
Writing secured puts
Bear call spread
Bull call spread
Bear put spread
Bull put spread
Guides and strategies offered by the Montréal Exchange are available on the website for your reference.
Guides and strategies offered by the Montréal Exchange are available on the website for your reference.
General Information and Registration
Eligibility conditions
All team members must be enrolled in a full-time undergraduate program, specializing in finance, in Quebec.
Duration
Ten consecutive weeks during the Fall and Winter terms only.
Team composition
Teams must be composed of at least two students. There is no limit to the number of teams per university nor per faculty.
Registration
Register your team by completing the Team Registration Form, including your selection of options classes as well as the membership and contact information. Deadline for submission of the online form:
Wednesday, September 19, 2012, at 5:00 p.m..
All team members must be enrolled in a full-time undergraduate program, specializing in finance, in Quebec.
Ten consecutive weeks during the Fall and Winter terms only.
Teams must be composed of at least two students. There is no limit to the number of teams per university nor per faculty.
Register your team by completing the Team Registration Form, including your selection of options classes as well as the membership and contact information. Deadline for submission of the online form:
Wednesday, September 19, 2012, at 5:00 p.m..
