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Energy Investing DeMystified

Book Description

FUEL your portfolio with SMART ENERGY INVESTING

ELECTRICITY. BIO-FUELS. NATURAL GAS. OIL. They power the world. And if you know what you're doing, they can power your investment portfolio.

Energy Investing DeMYSTiFieD provides the information, insight, and tools you need to immediately start investing in this exciting industry.

Written in a clear, easy-to-understand style, this go-to guide helps you diversify your portfolio with profit-driving investments in energy commodities, options, stocks, and bonds. Chapter-ending quizzes and a final exam help prepare you for energy-related industry examinations, such as GARP's Energy Risk Professional, the NASD Series 3, and the CFA Institute's Chartered Financial Analyst examination.

Energy Investing DeMYSTiFieD shows both new and experienced investors how to make wise decisions to diversify and expand their investments.

This fast and easy guide provides:

  • An overview of all the energy markets, including crude oil, refined petroleum products, bio-fuels, natural gas, coal, electricity, and more
  • Detailed coverage of commodity futures, commodity options, stock, and bond investments
  • Examples of effective strategies for generating high returns in this exciting market
  • A handbook-style reference containing option formulas, conversion relationships, product descriptions, maps, and other commonly used investing reference material

Simple enough for a novice but challenging enough for an experienced investor, Energy Investing DeMYSTiFieD helps you take full advantage of today's booming energy market.

Table of Contents

  1. Cover
  2. Energy Investing DeMYSTiFieD®
  3. Copyright Page
  4. Dedication
  5. Contents
  6. Introduction
  7. Part I The Energy Markets
    1. Chapter 1 Petroleum, Refined Products, and Biofuels
      1. Hydrocarbon Fuels
      2. Exploration & Production
      3. Crude Oil
      4. Petroleum Transportation
      5. Petroleum Refining
      6. Refined Petroleum Products (gasoline, diesel, and jet-fuel)
      7. Biofuels (Ethanol, Biodiesel)
      8. Quiz
    2. Chapter 2 Natural Gas, Natural Gas Liquids, and Coal
      1. Natural Gas
      2. Natural Gas Transportation
      3. Liquefied Natural Gas (LNG)
      4. Natural Gas Storage
      5. Natural Gas Liquids (NGLs) / Liquefied Propane Gases (LPGs)
      6. Coal
      7. Quiz
    3. Chapter 3 Electricity
      1. Electricity
      2. The Power Grid
      3. Regulated Markets & Power Purchase Agreements (PPAs)
      4. Deregulated Market Pricing
      5. Types of Generation Plants
      6. Renewable Power (Biomass, Solar, Wind, Hydro)
      7. Renewable Energy Certificates (RECs)
      8. Ancillary Services
      9. Capacity Markets
      10. Quiz
  8. Part II Trading & Investing
    1. Chapter 4 Trading Essentials
      1. Trades and Positions
      2. Features of Commodities
      3. Different Types of Prices
      4. Groups Involved in Trading
      5. Quiz
    2. Chapter 5 Forward Prices
      1. The Difference between Forecasts and Fair Prices
      2. Interest Rates and the Time Value of Money
      3. Forward Curves
      4. Extending Forward Price Curves
      5. Parent/Child Curves
      6. Statistical Distributions
      7. Volatility
      8. Extending Forward Volatility Curves
      9. Quiz
    3. Chapter 6 Swaps, Forwards, and Futures
      1. Direct Investments in Commodities
      2. Forward Contracts
      3. Futures and Margining
      4. Types of Futures Orders
      5. Futures Expiration Codes
      6. Exchange for Physical
      7. Quiz
    4. Chapter 7 Options
      1. Financial Options
      2. Option Payoffs
      3. American, European, and Asian Options
      4. Payoff Diagrams
      5. Put/Call Parity
      6. Option Greeks
      7. Quiz
    5. Chapter 8 Option Valuation
      1. Generalized Black–Scholes
      2. Average Price (Asian) Options
      3. Spread Options
      4. Quiz
    6. Chapter 9 Stocks (Equity Investments)
      1. Financing a Company
      2. Types of Companies
      3. The Corporation
      4. Ring Fencing and Structural Subordination
      5. Common Stock
      6. Preferred Stock
      7. Stock Dividends and Splits
      8. Voting Rights
      9. Quiz
    7. Chapter 10 Bonds (Fixed Income Investments)
      1. Corporate Bonds
      2. Bond Yields
      3. Interest Rates, Prices, and Yields
      4. Bond Ratings
      5. Secured and Unsecured Bonds
      6. Convertible Bonds
      7. Callable/Putable Bonds
      8. Quiz
  9. Part III Final Exam
    1. Final Exam
    2. Final Exam Answers and Explanations
    3. Endnotes
    4. Index