🎓 Tutor With Me: 1-On-1 Video Call Sessions Available ► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/
Thank you Brandon! Great job building your channel by the way, I don't get many people with checkmarks commenting over here. Are you a finance student?
Hey there! Great question. I'll likely make a video going into more depth on this topic in the future. When you short a call, your potential loss is theoretically unlimited as there's no upper limit to how high a stock can go. For short puts, your potential loss is limited to the strike price of the put. To protect against these risks: Hedging: One common method is to use hedging strategies. For instance, a covered call involves holding the underlying stock, which limits your potential loss. Stop Orders: Placing a buy-to-close stop order at a certain price can help limit losses. If the option's price reaches this level, the option will be bought back, closing the short position. Spreads: Using spread strategies can also cap potential losses. For example, a bear call spread involves shorting a call and then buying another call with a higher strike price, which limits the maximum potential loss.
🎓 Tutor With Me: 1-On-1 Video Call Sessions Available
► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/
bro I was so lost with options you made it so simple and easy to understand thankyou brother
Thank you Brandon! Great job building your channel by the way, I don't get many people with checkmarks commenting over here. Are you a finance student?
@@RyanOConnellCFA no im studying my canadian securities course. I took economics now I work at RBC.
Your channel is pure gold!
Thank you man, I really appreciate it!
THANK YOU SO MUCH!!! You are so much better than my finance professors.
this was the best explanation of put/ call options I've ever heard
You have explained the concepts well. keep it up Ryan
Thank you and will do!
Thanks Mr. Ryan, it's very clear and useful
thank you sir
My pleasure!
very very usefullll! and simplified. Thanks mate
You're welcome! I'm glad you found the video useful 👍
thank you for saving my life
Excellently Explained!
Most useful channel ever
Wow, thank you!
Helped a lot thanks so long puts have unlimited loss potential and well as short puts?
Best video ❤❤
Thank you!
Ryan, what are the mechanisms to protect against infinite liability, so to speak, of short calls/puts?
Hey there! Great question. I'll likely make a video going into more depth on this topic in the future. When you short a call, your potential loss is theoretically unlimited as there's no upper limit to how high a stock can go. For short puts, your potential loss is limited to the strike price of the put.
To protect against these risks:
Hedging: One common method is to use hedging strategies. For instance, a covered call involves holding the underlying stock, which limits your potential loss.
Stop Orders: Placing a buy-to-close stop order at a certain price can help limit losses. If the option's price reaches this level, the option will be bought back, closing the short position.
Spreads: Using spread strategies can also cap potential losses. For example, a bear call spread involves shorting a call and then buying another call with a higher strike price, which limits the maximum potential loss.
@@RyanOConnellCFA thank you!
@@victoricus1 My pleasure!
Great video. The pace of the video helped greatly. Will you be doing videos about option strategies or the greeks?
I plan on doing videos on both of these topics down the road!