What Are Exotic Options?

[@luisandrade2254]

2:17 Bermudan options: mix of European and American with option to buy before expiration but only at certain points 3:12 forward start options: only starts in the future (?) 3:51 compound options: options on options greater total cost and more possibility to leverage 4:38 chooser options: buyer can choose to make them put or call 5:35 barrier options: become normal/ worthless after passing a certain price (barrier) otherwise they are worthless/ normal options 9:23 binary/digital options: either pay a set amount or nothing 10:30 gap options: when there’s a gap between strike and payoff price 10:59 look back options: option to exercise at most advantageous point 12:44 Asian options: payoff dependent on the average price during the options life rather then spot price

[@saisundeep276]

no Nonsense ..full of info..thanks for the video..it was really great you delivered 16mins video without any distractions in a single take(I think it was a single take)

[@eltang3396]

HUGE amount of information in 16 minutes

[@binaydhakal6179]

very precise and no distraction..exactly what i needed

[@PBoyle]

Thanks Binay. Glad you found it useful. I'll start putting up more content next month which hopefully you will enjoy.

[@binaydhakal6179]

@@PBoyle that would be great. Thanks

[@Zzzz.842]

When you mention market niches around 1:20 do you think it would be possible to create a pricing model for a percentage of purchases or cost basis meeting a certain criteria?

[@fxeconomist]

Books, books, books. Books about exotics. Read some about in trading years too. So frustrating to find options only in books. What's the point to even learn about instruments that actually don't exist out there ? Least not for us the doggies. When the only places where exotics exist are institutional brokers, what does it matter ? I've had my fun trading one touch options. I've made money, I even lost at some point. It was a nice game, it ended. Later when I returned even the platform didn't exist anymore. I'm interested in trading them, not just reading about them. It was so lovely when I traded. 5 minute touch options. Could see the entire thing. Could feel the delta, the theta and the implied vola. All in 5 minutes. I would trade even more complex options. The more complex, the better. Better mousetraps. But no. Regulatory bodies don't want us trading smart things. We're supposed to use only blunt swords and broken shields to fend from risks. Complex stuff, oh, that's for institutionals! Mifid II, EMIR, Dodd-Frank and who knows what other godless regulations they made in the meanwhile... I was trying every derivatives firm when it all collapsed. "Sorry, we don't have compliance for that" bla bla bla..."Please do not continue if you're not designated as professional trader".

[@andrewangerbauer5433]

Thank you!! Your videos are incredibly well done!! 💯

[@campusmusiquedereda]

I mean he's basically reading a text with a brit accent, doesn't blink. and raises his voice at every sentence end.

[@AmanKumar-nz5kl]

ThankYou so much Patrick, i found this really helpful Man. its one of its own kind on Exotics which is fully fledged on the whole KZbin

[@rossfriedman6570]

Excuse me if this is a dumb question, but the buyer of American options can usually close out of the contract early, correct?

[@ProfAzimov]

Yes

[@mikestanmore2614]

Hi Patrick, I'm an investor, not a trader (I don't have the nerves to trade, I'm afraid). I have been looking into a portfolio structure which I believe was created by Artemis capital management, mentioned in "The allegory of the Hawk and the Serpent". Most sections of the strategy make sense to me, except the concept of being long volatility. I have heard that it is possible to use options to be long volatility, but my knowledge of these is extremely limited. Do you have a video which explains this? (I would like to create a long-term portfolio, as my partner is quite a few years younger than I am, and whilst she is very capable, her strengths do not lie in fiscal management. I want to ensure she is provided for long after I'm gone).

[@Dylan-zl4uk]

how and where do you trade exotic options? how liquid is it ? Cant find any solid answers on google.

[@ProfAzimov]

OTC

[@Morristung33]

I need this for exam , people are crazy

[@A_common_Man_00]

sir well explained. can i give one suggestion? you should try showing at least half of your body and explain with some hand gestures. thank you.

[@gift-jamiemunthalimawereng2534]

I agree. It's a little hard to focus when there aren't any visuals/ movements to help a learner retain information better.

[@Al.Aranzaso-Miras]

I thought I am long European style "like option" 😂