Call Options Explained: Understanding Short and Long Calls
Video Overview & Insights
In "Call Option Diagrams: Understanding Short and Long Calls," we delve deep into the complex world of call options. This video provides a clear, step-by-step explanation of how short and long call option payoff diagrams illustrate potential profit and loss scenarios. We demystify the intricacies of these essential trading strategies and guide you through their practical implications in the market. Whether you're a beginner or an experienced trader, this video equips you with the knowledge you need to understand and leverage both short and long call options effectively.
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This guy deserves more subs
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Chapters:
Great video
0:00 - Call options explained
0:58 - Long call options: Payoff Diagram
Doesn't make much sense. Why use either of these options at all. When you can just invest the $100 without the $10 premium.
5:52 - Short call options: 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.
I was struggling with understanding these diagrams for my class. Great explanation!
More User Perspectives
Wow, I wish I found this video a long time ago
@lazarus6983nicely explained
@DilshanTharindu1thakkkkk you love this so so much, it was right there, in the first 3 sentences of the video...
@zurzakne-etra7069First of all thanks bro , So in short call or profit is limited and risk is unlimited than who would short call ? Can u explain
@syedalirazakazmi3173Thank you
@sindisiwetshuma4949The best explanation I have found on that topic, thank you sir🫶🫶🫶
@Janbilityamazing!
@XinyanZhang-u8tthanks man
@majorboi8863so basically we should always do long call and never do short call?
@jianshue9240Great video! Helped a lot! What about strategies?
@stayingclassybest video to explain options on youtube
@ahmedyoussef5708Best explanation, thanks!
@lolagarchette5570God damn, cant believe this is free. cant find it for money in my region)
@Avan_EducationBest explanation ever
@manfulgloria4785So Covered Calls are Short Calls going by these definitions..? The way I learned to do the Wheel is sell Covered Calls when probability favors the underlying security appreciating in value, and Covered Puts when depreciation is favored viz. when you expect it to go down.
@aurinatorThis was the best, simple, basic video! Thanks, was very helpful.
@usha2007Thanks for the explanation. I have a quick question (sorry if it is stupid, Im new to this). Regarding Long Call Option profits, this is assuming the option is EXERCISED. So can we still profit if we sell the option at a higher strike price before expiration?
@riceballdonut847Great lesson, but..... worst handwriting ever!😂
@josephukedaddy0548Thanks a lot for the video, I couldn’t get this topic when a uni professor explained, so I came here :)
I have a small question. When we are talking about short call, what is the nature of the losses below zero: are they real losses (f.e. we need to pay someone) or that losses are like opportunity costs?
God bless you, bro. Needed this.
@emmanuelgaima9440Hello, thank you for this channel! Where do the words "long" and short" come from? I just don't understand why these words are used?
@mohammedlayes9248Thank you so much, just learning about options contracts in Uni and this really helped!
@krishiramsundar6153Your channel is very underestimated. Thanks from Russia!
@t.on.ythank you, the explanation is very clear
@victoricus1