Agenda
Thursday, November 11
8:00 a.m. - noon Morning Session
Why We Hedge: Introduction and Overview
Ed Kennedy, Senior V.P. Energy,
Hencorp Futures LC
The Markets have undergone dynamic changes in the
last five years. Price risk, basis risk, and credit risk must all
be considered in a successful hedging program. This session will review
these risks as well as review the slate of hedging products available today.
- Counterparty Credit Risk Understood
- Conventional Fixed Price Futures and Options
- OTC Clearport Financially Cleared Products
- Henry Hub Swap
- Locational Basis Swaps
- Index Swaps
Options Demystified
This session will focus on efficient use of calls and puts to give
you the knowledge you need to incorporate these tools into your natural
gas price risk management program. Mr. Kennedy will draw on his 20 year
of energy hedging expertise to provide insights on what option strategies
to use in both bull and bear markets. Among the topics to be discussed are:
- Options Refresher
- A Quick Review of Calls and Puts
- Intrinsic Value
- Time Decay
- Implied Volatility
- Options in Your Hedging Program:
- Price Protection for your Supply Needs
- Price Protection for your Production
- Managing Storage: Maximizing the Spread while Minimizing the Cost
- Price Protection for your Production
- A Look at Several Real-World Option Case Studies
noon Working Lunch
Financial Regulation Reform: An update of what newly-passed Financial
Regulation Reform means for the natural gas trader and hedger.
1:00 - 5:00 p.m. Afternoon Session
A Multidimensional Approach to Hedging Natural Gas Price Risk
Tom Saal,
Senior V.P. Energy, Hencorp Futures LC
There is an abundance of market information available to
natural gas traders each and every day. The key is knowing which signals to
follow and which signals to ignore, ultimately helping you to answer the
question: "Where's the Market Going?" Be on hand as Mr. Saal reveals the data
and clues produced by the market that help him and his clients make prudent
trading decisions each day.
- Utilizing Information Provided by the Market
- Fundamental Supply-Demand Balance Approach
- Time-Basis (Spread) Analysis and the Value of Storage
- Commitments of Traders Report
- Who's Doing What? Hedger versus Speculator Trading Behavior
- Disaggregated Commitments of Traders Report: A Look Inside this Newest Piece of Data
Equally important, however, is the ability to communicate
the basis of your hedging decisions to your management. This seminar will
not only train you how to read the market, it will also give you the tools
to explain those decisions to others in your organization.
Managing natural gas price risk also involves deciphering the signals
provided by the market and using it to your advantage. In these afternoon
sessions, Mr. Saal will reveal the technical tools he uses to analyze and
follow the market.
- Technical Analysis Refresher
- Moving Averages
- Stochastics
- Bollinger Bands
- Fibonacci Retracements
5:00 - 6:00 p.m. Networking and Cocktail Reception hosted by Hencorp Futures LC (at Magnolia's Hotel Bar)
Friday, November 12
8:00 a.m. - noon Morning Session
A Multidimensional Approach to Hedging Natural Gas Price Risk (continued)
Tom Saal, Senior V.P. Energy, Hencorp Futures LC
An Introduction to Market Profile
Devised by Chicago Board of Trade "Pit" trader and technician Pete Steidlmayer,
Market Profile analyzes a market's "fair value" using its recent history of its
price action plotted versus time. In this session, Mr. Saal will provide an
overview of this powerful tool and explain how it can be utilized effectively
to manage natural gas price risk.
- The ABC's of Market Profile
- From Barchart to Market Profile
- Horizontal and Vertical Pricing
- Normal Distribution of Prices
- The Initial Balance
- Value Area and Day Structures
- Trend Day "Space"
- Minus Development
- From Short-Term to Long-Term Applications
noon Seminar Concludes
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