Added: 3 years ago
From: Zecco
Views: 23,621
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  • hay Veronica, can i give you one long put option:)))))))

  • the blonde is hawt

  • sure, this babe is HOT?...but what she is selling you is the idea of buying a put option??...maybe because Zecco is selling options?

    FACT - 80% of Options expire worthless....so why would you buy them??

  • Who would dislike this video? ;)

  • my underlying stock went up during this video..

  • 1:26 "your gain is leveraged" huh?

  • best explanation on YT.

  • I presume one may extend the expiry date ? Ie, the date of expiry is of our choosing, is it not ? And I presume that doing so has a price? Is that not so ?

    Can anyone enlighten me on this point ?

  • Cashflows

    -20..875 + 9.25 = -11.625

    Now subtract the strikes

    120 - 100 = 20

    20 + -11.625 = 8.375

    max profit = $8.375

    max loss =-$11.62

    Since u already know about puts. The same idea. The assumption is that the price is going up. It must in order for you to make money. After the stock reaches the price of $120 the profit slope = 0.

  • Bullish Spread:

    Calls:

    Buy/Long @ $100 Premium = 207/8 Oct.

    Sell/Short @ $120 Premium 91/4 Oct.

    1 contract 100 shares

    Approx leverage 10%

    1 contract each position

    2 contracts total

    Payoff formula excluding commission:

    Long premium + Short Premium

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