FRM: Covered call versus protective put

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. For more financial risk videos, visit our website! http://www.bionicturtle.com

Comments

1. Made amazingly simple. Thank you!
2. It's really helpful thank David
3. lol the music at end. good vid
4. Right In My Head, Thanks David !
5. huge thanks for posting this video and for explaining it so clearly!!! been having difficulties to understand this topic for quite some time and i finally got it after seeing your video.
6. thank you soooooooooo much！
7. thank u! this is so clear compared to my professor's lectures
8. this video really helped me!!!! i'm writing this week and it just clarified alot of uncertainty!! thanks bionic
    
9. This is the shit! Apparently my professor shirks... I have never seen this in his lecture notes but it does appear in the exam lol. Wouldn't understand this without this vids thanks
10. I'm currently reading books on options trading, trying to learn the lingo and i must admit it's a little confusing to me especially since i'm only learning the difference between what options do. But it's so clear with this video, i too was confused on the difference between covered call and put. I just wish my university would have options for beginners courses.
11. Thanks man, I'm studying for Level 3 CFA and your video made protective puts/covered calls much clearer!
12. Awesome Shit
13. @gjesnku I'm averaging 600 pips a week. Get the right strategy and everything falls into place. I use this for 80% of my trades. Check out the video here >> bit.ly/LFsRyB?=xoiyyf
14. amazing explanation!!!
15. Darrel, thanks I really appreciate that!
16. well explained. thanks a lot.
17. 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?
18. Thanks a lot :) ithelps us a lot:) continue this great work:)
19. Thank you!!
20. Your videos are so helpful :) Thank you very much :)