Nice video on spreads. I trade them monthly and definitely would suggest that people stay out of the weekly game on these. You can just get too close to the market and volatility can jump dramatically.
Could someone help me out? My textbook here says that (quote) "A credit spread call option is a call option whose payoff increases as the risk premium or yield spread on a specified benchmark bond of the borrower increases above some exercise spread". Why is my textbook implying that you stand to GAIN if the spread WIDENS for a credit spread CALL option? That's opposite of what you said.
Nice video on spreads. I trade them monthly and definitely would suggest that people stay out of the weekly game on these. You can just get too close to the market and volatility can jump dramatically.
bullzandbearz 4 months ago
lol T-Bills aren't risk free. Bury your briefcase full of treasuries next to my chest full of gold and silver and let's reevaluate in 20 years.
TorynHill 10 months ago
@TorynHill nothing in the world is risk-free, ceteris paribus is a necessity
missedagain 10 months ago
Great video, thanks
Rickroll604 1 year ago
Could someone help me out? My textbook here says that (quote) "A credit spread call option is a call option whose payoff increases as the risk premium or yield spread on a specified benchmark bond of the borrower increases above some exercise spread". Why is my textbook implying that you stand to GAIN if the spread WIDENS for a credit spread CALL option? That's opposite of what you said.
supersimpson2001 3 years ago
very informative. THANKS! But could you possibly show an example in a video?
dubseller 3 years ago
Yeah, for credit spreads
cjharrol 3 years ago