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! www.bionicturtle.com

[@rubyredslipperss]

Thanks man, I'm studying for Level 3 CFA and your video made protective puts/covered calls much clearer!

[@danyhersly9594]

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.

[@carolynsandberg3144]

You still writing calls, or did you?

[@azolasibonisemtshabe252]

this video really helped me!!!! i'm writing this week and it just clarified alot of uncertainty!! thanks bionic

[@bongsmzayiya2646]

Hi Azola. igama lam nguBongani. I am wondering if you did Risk Management or what, because I am looking for assistance for my Feb Exams..

[@mickankit]

Right In My Head, Thanks David !

[@MAY7317]

Thanks so much i've watched so many videos i finally found a video that explained every bit of it 💐 🙏🏼 Greetings from Kuwait

[@gabrielwong1991]

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

[@bionicturtle]

Glad we could help! Thanks for watching!

[@alskdj143]

Thank you for your contents in youtube. It is very helpful for me to study GARP FRM.

[@Ni_Palavi]

Made amazingly simple. Thank you!

[@bionicturtle]

You're welcome! Thank you for watching! :)

[@johnnyjin1359]

It's really helpful thank David

[@MrsSenichka]

Your videos are so helpful :) Thank you very much :)

[@jetliigor]

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.

[@bionicturtle]

Darrel, thanks I really appreciate that!

[@buzzroadguy]

I have to say your style of graphing and explaining was really great and very informative. Thanks!

[@khaganikarimov4578]

Can you apply protective put and covered call when you short the stock?

[@ny1fanta]

amazing explanation!!!

[@milanhembram6314]

Thank you so much, I was really confused with strategy pay off.

[@clifdurant5435]

1. Assuming the purchase price is 20- If we think the stock is going up, why would we place the the strike at the same price that we purchased it? 2. What makes the premium $2?

[@KT-zx9jr]

Good clip and I think the strategy comes down to your aim. If mkt conditions are bullish and in recovery mode, you really dont need the protective put as much. I like the ccalls for income and hanging onto the stock. I roll the weeklies if they go itm and still get max weekly returns and when the stock drops the calls go to 0 fast and I still keep the stock. I find the income collection in many environments allow you a lot of flexibility. Thanks.

[@rogda123]

lol the music at end. good vid

[@Ravichandran2109]

Thanks a lot :) ithelps us a lot:) continue this great work:)

[@stb6688]

well explained. thanks a lot.

[@brandonspiegel2293]

Thank you for the amazing video!!!!!!!!

[@bionicturtle]

Thank you for your kind words! We are happy to hear that our video is so helpful!

[@echelecopao]

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?

[@diamond140]

Thank you!!

[@kexinfeng9503]

thank you soooooooooo much！

[@donif.6193]

That’s gold!😍

[@sasinajeya]

Thanks a lot !!!!!

[@yurilowell1988]

Thanksssssss!

[@floorgang1483]

AWESOMEEE

[@Adseas]

Awesome Shit

[@Bluemoonrealtygroup0617]

I have watched several videos on this topic and none of them are clear. Including this one.

[@larsalexanderson2169]

And again not understand anything😅🙃