Good explanation as usual for Khan Academy. I've been studying for an options supervisor exam and he is correct (from my quick analysis) on all accounts.
Wait so the market isn’t perfect in determining the price of the option so you could technically make money in a call out of the money if expectations change and it looks like it is headed to be in the money.
no, you buy both, in the straddle and strangle case. Strangle you need more of a move in the underlying to profit. This is a straddle I was wrong. I think you're think bear and bulls SPREADS.
strangle is a straddle with different exercise prices for call and put. You basically avoid paying for the range where you expect the stock price not to be.
No this is a straddle because the options are at same strike price, ATM. In a strangle, the options have different strike prices, both OTM to reduce the cost because the more OTM the lower the premium.
how does this dude know everything about every class ive ever been in
Fun fact: my bro just said that also 😂😂
Ha ha ha 😂
I opened this video wondering the exam same thing, how sway?
God Bless your intellectual charity
You explain better than any lecturer I've met, god bless you, screw university
Khan Academy is one of the best things ever. :D
Good explanation as usual for Khan Academy. I've been studying for an options supervisor exam and he is correct (from my quick analysis) on all accounts.
Nice explanation. Now point me in the direction where I can find $10 options 😊
I present to you: 18% OTM 4DTE spy puts!
Why did I pay all this money for an economics degree when you're teaching it better than any of my lecturer's 😅
Wait so the market isn’t perfect in determining the price of the option so you could technically make money in a call out of the money if expectations change and it looks like it is headed to be in the money.
For India, it will be more relevant if Nifty and Indian stocks are used.
Above 60$ and below $40 for Long Straddle to make money.
yeah healthcare should be free
is this not a strangle?...
no, you buy both, in the straddle and strangle case. Strangle you need more of a move in the underlying to profit. This is a straddle I was wrong. I think you're think bear and bulls SPREADS.
strangle is a straddle with different exercise prices for call and put. You basically avoid paying for the range where you expect the stock price not to be.
No this is a straddle because the options are at same strike price, ATM. In a strangle, the options have different strike prices, both OTM to reduce the cost because the more OTM the lower the premium.