The covered call is an income strategy, but the protective put is an insurance strategy. Note the y-axis is a plot of position profit, where option profit = option payoff -- option premium.
i don't really understand. if the value of the stock is higher than 20, and your counterparty wishes to exercise the call option... doesn't this mean you are obligated to sell your stock?
How can there still be positive influence of the share price of the stock, if it no longer is in your possession?
well explained. thanks a lot.
stb6688 2 months ago
Instead of a protective put (Long stock + long put), why not just buy a call option.
Doesn't that result in the same payoff diagram? What is the advantage of one alternative versus the other?
echelecopao 3 months ago
i don't really understand. if the value of the stock is higher than 20, and your counterparty wishes to exercise the call option... doesn't this mean you are obligated to sell your stock?
How can there still be positive influence of the share price of the stock, if it no longer is in your possession?
yvesO301 8 months ago
Thanks a lot :) ithelps us a lot:) continue this great work:)
Ravichandran2109 8 months ago
Thank you!!
diamond140 9 months ago
Your videos are so helpful :) Thank you very much :)
MrsSenichka 1 year ago
Thank you for your contents in youtube. It is very helpful for me to study GARP FRM.
xorhdgns 1 year ago
Thanks for these. I'm studying Options, Futures and Risk Management and these videos are helping a lot in reinforcing what I've gained from lectures.
a1113725 1 year ago