Managing Price Risk II - Details Coming Soon!


Managing Price Risk

Steel Market Update and Andre Marshall, CEO of Crunch Risk LLC along with the CME Group, are conducting a workshop for those who are actively involved in the buying or selling of steel. The purpose of Managing Price Risk II: Strategies & Execution is to go past introducing market participants to hedging and the terminology involved when dealing with financial derivatives, and to concentrate on defining strategies and the execution of trades involved with a specific end goal in mind.

Hedging Price Risk is a strategy executed by sophisticated buyers on a wide variety of products around the world. The hedging strategies come in various shapes and forms such as options (puts and calls), and combinations of physical steel, futures/swaps and options, etc.

Depending on the desired goal, a company will engage sales and or purchasing to coordinate with management and or finance/risk management to determine a strategy for the company’s risk profile. For example, if your company is interested in protecting inventory values then there are specific moves, and counter moves, that must be executed on a regular basis in order to achieve the end goal. In this workshop, we will explore specific strategies and practice the execution of trades through real world scenarios.

 

Our next workshop is still in the planning stage.For more details please explore the links below.

 

Objectives

Participants will understand:
  • How to pick the proper strategy for the goal.
  • How to evaluate markets and the trading process.
  • How to execute the initial trades associated with the strategy.
  • How to maneuver through a dynamic ever-changing market and execute trades based on a changing environment.
  • Timing and when to buy and when to sell or unwind a trade.

Location:

CME Group
To be announced

Schedule

Day 1

We will offer a 30-45 minute refresher course from 12:00 noon until 12:45 PM for those who wish to become better familiar with basic terms and concepts. The full workshop will begin at 1:00 PM and last until 5:00 PM Central Time.

Futures Markets:

• Example of a Swap
• Selling forward against inventory
• Buy and Sell / cash and carry examples
• Options – introduction to Calls and Puts and their use in hedge strategies.
• Buying or selling a collar – Call and Put together,
• Synthetic Calls and Puts – Swap and Option together.

Day 2

Day 2 will begin at 8:00 AM with a review of Day 1 material with a refresher on options.

Review of mechanics of trades and costs associated with exchange and OTC trading.

Interactive trading exercises – This will be the key portion of the course as we create scenarios and have our attendees take trading positions based on the strategies needed to accomplish goals. We will have multiple scenarios and will conduct mock trades over a period of time so our attendees become familiar with the use of swaps, futures and options in order to obtain the intended goal. We will discuss what happened over a period of time and identify mistakes that could have been prevented. Our goal is to put each attendee into multiple strategies from different vantage points so they can see how each market move and trading move impacts their desired end goal.

The class will last until about 2 PM Central Time and, during lunch, we will have a special speaker (economist, analysts, consultant or trader) who will provide some insights into the markets.

Instructors

André Marshall, CEO

Crunch Risk, LLC

President and founder of Crunch Risk, LLC, a Risk Management and Brokerage firm specializing in Steel Futures. Mr. Marshall has over 20 years of commodity trading and financial risk management experience. Mr Marshall has worked as a physical metal/mineral trader for various European firms including Sogem running their New York trading operations. Recently, Mr Marshall has originated derivatives for Koch Supply & Trading and subsequently started his own firm in 2005. 

Pricing

Registration Fees:

$1000 per person. Includes full two day conference, lunch, and snack breaks.

Discounts:

  • $100 Discount per person if their company is a Steel Market Update member
  • $100 Discount per person if their company sends 2 or more people. 

Lodging

We have not blocked rooms at any particular hotel.

Register

Registration is currently closed. Registration will open in advance of the next scheduled workshop. Check back for updates.

Event Properties

Event date: 12-31-2017 12:00 am
Event End Date: 12-31-2017 12:00 am
Individual Price $1,000.00

Group Rate

Number registrants Rate/Person($)
Individual Price $1,000.00
2 $900.00
3 $900.00
4 $900.00
5 $900.00
6 $900.00
7 $900.00
8 $900.00
9 $900.00
10 $900.00
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