If an option expires "out of the money", it will have no intrinsic value and expire worthless. Whoever bought the option will lose what money they paid for it (the option's premium, or price) and whoever sold it will keep any premium they had collected from selling it prior to expiring. Does that clear it up? Thanks for the comment!
In the context of stock replacement, you’re right - buying an in-the-money call would simulate buying a stock, buying an in-the-money put would simulate shorting a stock. The calls would profit from a rise in the stock, the puts would profit from it falling.
Hello! I am an Options Trader. Shared it to my friends who wanted to get into the world of options. Incredible content mate. Cheers
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Great info!! I learned more in this than I did in my advanced finance class
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I just started watching towards the end, but this looks to be very useful and in-depth information. Subscribed.
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If I do have a long call option that is OTM at expiration,...you said that one would lose his money. I thought one would just lose the premium?
If an option expires "out of the money", it will have no intrinsic value and expire worthless. Whoever bought the option will lose what money they paid for it (the option's premium, or price) and whoever sold it will keep any premium they had collected from selling it prior to expiring. Does that clear it up? Thanks for the comment!
Hi, correct me if I'm wrong.
Is it correct to say that Call options are like Long orders
and Put options are Short orders?
In the context of stock replacement, you’re right - buying an in-the-money call would simulate buying a stock, buying an in-the-money put would simulate shorting a stock. The calls would profit from a rise in the stock, the puts would profit from it falling.
@@TactileTrade I'd love to learn more from your future videos. I'm implementing quant stuffs that I learn from you and other quant channels.
@@sedna16 So glad you're finding it helpful! I've got lots planned, just need to get the time to do it!
Are you still offering an active subscription to your program?