Day 2 • Tuesday, April 28, 2009

8:00 – 9:30 a.m.
Bonus Biodiesel Breakfast
Bob Gray, President, Indigo Fuel Technologies
Bob Gray
Hear from one of the most respected producers in the marketplace about the current state of the biodiesel industry. In this no-holds-barred, frank and honest discussion, Bob shows where biodiesel fits in, and where it doesn’t. Don’t miss this highly informative and entertaining session.
9:30 – 10:30 a.m.
Gasoline Blending
Part 1: The Basics of Blending Risk
John Gretzinger, Energy Trading Manager, FC Stone
John Gretzinger
In order to effectively manage your gasoline purchasing and inventory, you need to understand the risks you face and how you can mitigate them. In this lively session, our expert instructor will cover the foundations of hedging and explain what you must know to successfully manage your petroleum product risk. You’ll get a complete understanding of key concepts such as basis, spreads, options and more.
10:30 – 11:30 a.m.
Gasoline Blending
Part 2: Successful Blendstock Strategies
John Gretzinger, Energy Trading Manager, FC Stone
Now that you have the basics, our expert instructor will tie in the risk of blending for the spread and tying your purchase to a price-indexing service. John will thoroughly explain the pluses and minuses of going branded vs. unbranded, getting fuel shipped to you or buying from the rack. John will also show you how to mitigate the risk of supply economics and tie in what you learned in Part 1.
11:30 a.m. – 12:00 p.m.
Class Exercise
John Gretzinger, Energy Trading Manager, FC Stone
We’ll provide you with real-world examples of marketers with risk in gasoline and ethanol and show you what they’ve done to manage that risk. Then, we’ll place you in their shoes and let you learn by doing as you craft your own supply deals.
12:00 p.m.
Box Lunch
12:30 p.m.
Board Bus for the CME Group
(formerly known as the Chicago Board of Trade)
1:00 – 2:00 p.m.
Special Tour – CME Group’s Trading Floor
Take an exclusive tour of the CME Group’s trading floor and witness traders in action! The CME Group is a leading futures and options exchange. More than 3,600 CME Group members trade 50 different futures and options products at the exchange through open auction and/or electronically.
2:00 – 2:30 p.m.
The Ethanol Contract on CME
CME Representative
Now that you’ve seen floor trading in action, we’ll take some time to outline how to interpret trading activities and how you can be a participant. But before diving full force into risk management strategies, it’s important to understand the CME Group’s ethanol contract specifications and what they mean for your business.
2:30 – 2:45 p.m.
Refreshment Break
2:45 – 3:45 p.m.
Gasoline Blending
Part 3: Mastering Advanced Options
John Gretzinger, Energy Trading Manager, FC Stone
We’ll explore marketers’ risk and focus on the characteristics of options as financial instruments. You’ll get in-depth instruction on advanced options. John will explain step by step how option instruments may work within your business model.
3:45 – 4:45 p.m.
Gasoline Blending
Part 4: Projecting “Value at Risk”
John Gretzinger, Energy Trading Manager, FC Stone
John will explain the key term “Value at Risk” and how it can apply to your business. You’ll learn how to project for capital needs of hedging and managing risk. He’ll show you how to quantify your risk and then decide what amount of risk your company is willing to take and not to take. We’ll finish it up with discussions on how to eliminate the risk you do not want and John will reinforce your understanding of puts, calls, caps, collars, margin calls and other terms that will help you become a more savvy participant in the futures game.
4:45 p.m.
Adjourn for the Day
4:45 – 7:00 p.m.
Networking Cocktail Reception
Hosted by the CME Group


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