Option Spreads: Protective Put and Covered Call

[@hc6143]

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

[@zakariahmihoubi4445]

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

[@MattBrigida]

That is great to hear!

[@oanaalexandra1714]

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

[@MsEnigmaticDiva]

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

[@tanveerahmed7390]

Gandhari..... How much u lost in market

[@Moe1110]

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

[@MattBrigida]

You are welcome! Glad I could help.

[@krishashrimankar8390]

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

[@efanjohnson8207]

Best video i could find to help understand a collar strategy

[@mrinalkantichandra6243]

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

[@saurabhbcn]

Thanks Matt. One of the best explanations!!

[@anshuman8005]

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

[@lucasmatthews8608]

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

[@CheekyMonkey1776]

Excellent video. New subscriber.

[@sumangalaasok65]

Careful. He is a rare gem 💎

[@patrickelvins8038]

Great video! Subscribed.

[@selshiateresa2566]

Very clearly explained. Thank you

[@babatundeeyinfunjowo2647]

Unreal! Thanks Matt.

[@biganubhav]

Excellent video!

[@stanleysolagah5492]

Underrated ❤

[@sannyj80]

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

[@SajidArt1]

great sir......

[@bk-ci3pg]

Finally understood the combined diagram.

[@NestaAstern]

Thank You for that very easy to understand presentation.

[@SNIPE263]

solid video mate. thanks!

[@minhthaoduongthi2594]

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

[@theanmol1704]

Legend!

[@TheAlsmari]

Thank you 🙏

[@brianquigley6862]

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]

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.

[@SksToTheMini14]

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

[@terrywendland9112]

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.

[@ghizlencerise2305]

thank you very much from Algeria

[@MattBrigida]

You are welcome!

[@pranchalgulati6880]

It was really helpful. Thankyou :-)

[@josephlau4198]

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

[@FredLe-qc3hi]

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

[@Illinformed.lasvegas]

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]

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).

[@kimberlyrumble]

Thank you!

[@Luftwaffe777]

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

[@highjumperlove]

Fantastic

[@isurusenevirathne]

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

[@joeljames6028]

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]

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.

[@kanjatsiam]

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

[@MattBrigida]

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.

[@mag3690]

good video

[@Bluemoonrealtygroup0617]

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

[@WallStreetPirate]

good boy... :)

[@stupidrabbitw3958]

Thank you

[@bobdoyle5945]

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]

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.

[@manojkp9383]

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

[@pamelaswords989]

thank you

[@runbama1013]

thank you

[@OpTiicXLucaas99]

Thank you