Call and Put Options Explained: The Ultimate Guide
Video Overview & Insights
"Call and Put Options Explained: The Ultimate Guide" is your comprehensive resource for understanding these fundamental trading tools. This video unravels the complexities of both long and short call and put options, illustrating how these payoff diagrams can be used to navigate potential profit and loss scenarios. We dive deep into the practical applications of these strategies in the financial market, demystifying the nuances of long and short positions. Whether you're a novice or an experienced trader, this guide arms you with the knowledge to effectively strategize and maximize your trading potential.
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Chapters:
Excellent explanation and examples!!!!!
0:00 - Intro to "Call and Put Option Payoff Diagrams"
0:12 - Call Options Explained
Glad I'm lost at options 😂 saves me a lot of money. I do better not timing the market. Time in the market is much better. If you don't have the insider info which is cheating stay away from options. You may as well be a day trader which 99% don't succeed at
1:11 - Long Call Option: Payoff Diagram
6:04 - Short Call Option: Payoff Diagram
When I followed your teaching, I understood everything. Thank you very much.
8:54 - Put Options Explained
9:53 - Long Put Option: Payoff Diagram
You’re naturally such a great teacher.
13:40 - Short Call Option: Payoff Diagram
Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Based on the diagram we created, we did it for the Investor and not for Company XYZ, am I right?
More User Perspectives
Great explanation. I’m wondering if you ever noticed that you spelled receive wrong. Both times 🙂.
@papppannithanks for the clear explanation, I have watched about 6 videos trying to grasp this
@ddugan64Can we also get some theoretical concepts explained by you , That'll be awesome
@yagnyeshadhabade7349I don't get the short call part. The way I understand it. I have the shares and I am making a deal with someone that at some point in time I will sell my shares to that someone for specific price. That someone pays me premium for that. Am I getting it correct? Sooo, if price goes down, contract is not realized. Buyer lost a premium, I gained a premium.
If price goes up and contract is realized, buyer earns money from calculations, but what about me? How am I losing anything? Yes, I am obliged to sell him my shares for specific price, so if price is higher I theoretically haven't earned more, but I also haven't lost anything because I've sold my shares with premium for a profit. What am I getting wrong here?
How otherwise does it make any sense to be a short call writer? If I was convinced that price will drop I would just go with long put.
Am I wrong in assuming that short call writers offer their own shares(I understand the principle of short trading, but in case of options I am not sure if words are used in the same meaning)? That would make it clear for me, but then why not just go with long put and the worst case scenario is I lose premium?
Can you give me a scenario where being a short call writer makes more sense than being a long put buyer?
bro I was so lost with options you made it so simple and easy to understand thankyou brother
@byoungvidzthank you sir
@arnomaertens2623Excellently Explained!
@AjaySinghBayArea.Young50thank you for saving my life
@tendaikufazvinei9322this was the best explanation of put/ call options I've ever heard
@katyailnitskaya2459THANK YOU SO MUCH!!! You are so much better than my finance professors.
@HurriedDragonsHelped a lot thanks so long puts have unlimited loss potential and well as short puts?
@Malachi162Thanks Mr. Ryan, it's very clear and useful
@fnader1000very very usefullll! and simplified. Thanks mate
@victoroshati9618Most useful channel ever
@suryasameerdattavaddadi9861Best video ❤❤
@medicoseoffical7931You have explained the concepts well. keep it up Ryan
@brighttchoka8109Ryan, what are the mechanisms to protect against infinite liability, so to speak, of short calls/puts?
@victoricus1Great video. The pace of the video helped greatly. Will you be doing videos about option strategies or the greeks?
@xhesitase9729Your channel is pure gold!
@Relert3252