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Canadian Derivatives Exchange*

Options Trading Simulation

General information and registration

Eligibility conditions

Each team must be enrolled in a full-time undergraduate program, specializing in finance (or any other related discipline), in Quebec.

Team composition

Teams must be composed of one to five participants. There is no limit to the number of teams by university or faculty.

Free registration

Complete the registration form.

Registration deadline

Monday, January 28, 2013, at 5:00 p.m.

Simulation description

Initial parameters

  • Each team is given a virtual cash account of $100,000 to build their options portfolio.
  • To construct their options portfolio, each team must choose at least ten options classes from the list of the Canadian options classes.
  • This nine-week Options Trading Simulation is held during the 2013 winter term, from February 4, 2013 to April 5, 2013.

Mandatory components

  • Each team is required to attend an education session on the Canadian derivatives market and the use of trading strategies. This session will be held at the amphitheatre of UQÀM's Cœur des sciences and through webcast on January 31, 2013 at 5:00 p.m.
  • Each strategy must have a minimum notional value of $5,000 or 10 options contracts.
  • Mandatory strategies must be traded in a single transaction, and not by legs. To do so, select the appropriate strategy in the "Transaction Type" field of the Options Trading Simulator.
  • All positions must be liquidated before market close on April 5, 2013. Each team with open positions after the last trading day will be disqualified.

Mandatory strategies

  • Each team must execute the following four predefined options trading strategies:
    • Covered call writing
    • Protective puts
    • Long call
    • Bull or bear spread
  • Each team must execute two surprise strategies that will be unveiled by email on the 4th and 7th trading weeks. Both emails will include a link to access both strategy-instruction videos starting respectively on February 28, 2013 at 5:00 p.m. and March 21, 2013, at 5:00 p.m.

Winners

The wining team will have respected the mandatory components while accumulating the best return after nine trading weeks and will receive a $10,000 prize from the Montréal Exchange.

Equity option strategy sheets

Guides and strategies offered by the Montréal Exchange are available on the website for your reference.