Option Spreads: Protective Put and Covered Call

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  • Опубликовано: 28 сен 2024

Комментарии • 61

  • @oanaalexandra1714
    @oanaalexandra1714 4 года назад +3

    The only video that actually explains it !!! So grateful for this video. Thank you!!

  • @MsEnigmaticDiva
    @MsEnigmaticDiva 6 лет назад +3

    i attended class and looked it up online but didnt even understand it, but honestly you are the only person that managed to make me understand it thank you so muchhh

  • @saurabhbcn
    @saurabhbcn 7 лет назад +3

    Thanks Matt. One of the best explanations!!

  • @efanjohnson8207
    @efanjohnson8207 3 года назад +1

    Best video i could find to help understand a collar strategy

  • @anshuman8005
    @anshuman8005 4 года назад

    Greatly helpful. It has certainly increase my grey cells. Keep up the good work Sir. /// Respect

  • @lucasmatthews8608
    @lucasmatthews8608 3 года назад

    It finally clicked for me. Thanks for making this video!

  • @selshiateresa2566
    @selshiateresa2566 11 месяцев назад

    Very clearly explained. Thank you

  • @bk-ci3pg
    @bk-ci3pg Год назад

    Finally understood the combined diagram.

  • @sannyj80
    @sannyj80 8 лет назад +2

    Thanks a lot , it was hard to find this explanation.

  • @hc6143
    @hc6143 Год назад +3

    The best FIN lecture about Put&Call I've ever seen. Frankly speaking, Matt Brigida does a better job in explaining this content than 99% of the Fin professors

  • @babatundeeyinfunjowo2647
    @babatundeeyinfunjowo2647 Год назад

    Unreal! Thanks Matt.

  • @ghizlencerise2305
    @ghizlencerise2305 7 лет назад +1

    thank you very much from Algeria

  • @minhthaoduongthi2594
    @minhthaoduongthi2594 5 лет назад

    Thank youuuu so muchhhh, it's really helpful and clearrrrr ^^
    Merry Christmas and wish you the besttttt

  • @SajidArt1
    @SajidArt1 Год назад

    great sir......

  • @terrywendland9112
    @terrywendland9112 2 года назад

    Good job. I like credit and debit spreads for income. Iron condors have good premiums but how do you keep them if the stock runs against you? Keep up the good work.

  • @OpTiicXLucaas99
    @OpTiicXLucaas99 2 года назад

    Thank you

  • @josephlau4198
    @josephlau4198 3 года назад

    Hello Matt, Is there an alternative strategy to the covered call strategy during a steep market correction? ( 2008-2009 GFC) As far as l am concerned, a covered call strategy might not be executed during a steep market. Thank you

  • @isurusenevirathne
    @isurusenevirathne 5 лет назад +1

    well explain sir , can you teach us to use software to draw payoff diagram ( from:Sri Lanka)

  • @FredLe-qc3hi
    @FredLe-qc3hi 4 месяца назад

    You forgot to mention about delta. The amount of loss depends on the delta too

  • @Illinformed.lasvegas
    @Illinformed.lasvegas 3 года назад

    New option trader here:
    If I’ve been long a stock for 3+ years and the stock has gone up. Would I be more advantage to covered call or protective put?

    • @MattBrigida
      @MattBrigida  3 года назад

      Each spread is used for a different purpose. Selling a call on the stock would sell the stock at a target price (effectively placing a limit sell order). There is no downside protection.
      Alternatively, a protective put will lock in your gains (effectively placing a stop sell order).

  • @pranchalgulati6880
    @pranchalgulati6880 7 лет назад

    It was really helpful.
    Thankyou :-)

  • @kanjatsiam
    @kanjatsiam 4 года назад

    Why used Covered Call where the risk of price going down is unlimited as compared with Protective Putt?

    • @MattBrigida
      @MattBrigida  4 года назад +4

      The spreads serve different purposes. A protective put is used to limit the downside if you own a stock. A covered call is to attempt to earn extra income from owning a stock.

  • @joeljames6028
    @joeljames6028 7 лет назад

    shouldn't the short call profit curve tilt downwards from the strike price point (100) in the covered call example? in the video it tilts downwards from 110 (strike price+premium).

    • @MattBrigida
      @MattBrigida  7 лет назад +1

      Thanks for your question. The strike price (K) of the call option is 110 in the covered call example. The option's premium is $2.

  • @kimberlyrumble
    @kimberlyrumble 4 года назад

    Thank you!

  • @highjumperlove
    @highjumperlove 5 лет назад

    Fantastic

  • @bobdoyle5945
    @bobdoyle5945 7 лет назад

    is this a buy to open put? or is this like a covered call only backwards.. sell to open put where you collect the premium ?

    • @MattBrigida
      @MattBrigida  7 лет назад

      In the protective put you are buying a put option and buying the stock. You can think of it like buying the stock, and simultaneously paying for insurance.

  • @WallStreetPirate
    @WallStreetPirate 2 года назад

    good boy... :)

  • @mag3690
    @mag3690 6 лет назад

    good video

  • @Bluemoonrealtygroup0617
    @Bluemoonrealtygroup0617 2 года назад

    I watched the video twice and was still lost on this subject.

  • @manojkp9383
    @manojkp9383 4 года назад

    I think Max loss is unlimited for covered call... Not 98...

  • @zakariahmihoubi4445
    @zakariahmihoubi4445 7 лет назад +18

    I have watched a good amount of videos on this subject on RUclips. With you I actually get it. Really relieving man. Thank you :)

  • @stupidrabbitw3958
    @stupidrabbitw3958 7 лет назад

    Thank you

  • @Luftwaffe777
    @Luftwaffe777 3 года назад

    Nice dress code;) Btw: you forget the time which elapses and options are getting cheaper then

  • @loreall.2461
    @loreall.2461 3 года назад +1

    After two years of trading and a year of covered call options and a gazillion puts in this bull market , watching this video several times I think I finally grasped this diagram to help analyze the basics of profit and loss on an option. It’s been more challenging to make trades given the rotations we’re seeing of late. This was an easy enough explanation and I’m enjoying some of your advanced videos today on binomial option pricing, which was a bit much for me, but so were identifying candlesticks two years ago. I hope to progress to this more advanced concepts soon with your excellent teaching skills. Many thanks.

    • @MattBrigida
      @MattBrigida  3 года назад +1

      That is great to hear, thanks!

  • @brianquigley6862
    @brianquigley6862 6 месяцев назад

    Matt, thx for a very very good video. It's 2024 when I found this. Can you tell me what the investment objective is/was for putting on the "Collar" in your example? I love CC's but love PMCC even better and my objective is primarily Income. My question to you is this: Do you know of an efficient technique to HEDGE a PMCC multi-lot set-up? I have been using a Put Vertical for a few years. I am always Delta positive at set-up but less Delta + than w/out the hedge (minimize risk). I set-up the call side in such a way that I can't lose on an upside GAP but bc I am Delta + I can be losing on the GAP down. Do you have any hedge suggestions for a PMCC set up? I usually buy 9 moths out.
    Thank you!

    • @MattBrigida
      @MattBrigida  6 месяцев назад

      Thanks for your comment. The objective of the collar is to limit your exposure to an asset to a defined interval. Stock collars are common, however collars are often used in interest rate markets. You can also think of a collar as financing downside protection by selling upside exposure.
      Great questions on the PMCC. There is not much room to write here, but maybe I can put a video up soon covering the PMCC and some of the points/questions you raise.

  • @patrickelvins8038
    @patrickelvins8038 3 года назад

    Great video! Subscribed.

  • @theanmol1704
    @theanmol1704 2 года назад

    Legend!

  • @Moe1110
    @Moe1110 7 лет назад +1

    I'm only at the 1:51 mark and I already feel the help coming.
    THANK YOU FROM MONTREAL, CANADA.

    • @MattBrigida
      @MattBrigida  7 лет назад

      You are welcome! Glad I could help.

  • @pamelaswords989
    @pamelaswords989 6 лет назад

    thank you

  • @biganubhav
    @biganubhav Год назад

    Excellent video!

  • @stanleysolagah5492
    @stanleysolagah5492 Год назад

    Underrated ❤

  • @TheAlsmari
    @TheAlsmari 2 года назад

    Thank you 🙏

  • @runbama1013
    @runbama1013 2 года назад

    thank you

  • @mrinalkantichandra6243
    @mrinalkantichandra6243 4 года назад

    After searching lot of video, your video as well as explanation clear my conception. Thank you Sir. Regards

  • @krishashrimankar8390
    @krishashrimankar8390 3 года назад

    Comprehensive explanation...I'm glad youtube brought your video to me

  • @SksToTheMini14
    @SksToTheMini14 5 лет назад

    Thanks for the video. helped simplify it for me as well

  • @CheekyMonkey1776
    @CheekyMonkey1776 3 года назад

    Excellent video. New subscriber.

  • @NestaAstern
    @NestaAstern 5 лет назад

    Thank You for that very easy to understand presentation.

  • @SNIPE263
    @SNIPE263 4 года назад

    solid video mate. thanks!

  • @sumangalaasok65
    @sumangalaasok65 3 года назад

    Careful. He is a rare gem 💎