The speaker covers two of the key option greeks, vega and rho. Vega represents an options price change in response to changes in volatility while rho represents an options pricing adjustment in response to interest rates.
The speaker takes a look at options and covers the basic components, specifically discussing the definition of a strike price and also how to pick the appropriate strike price for an option.
The speaker covers the definition of an in the money call option. A call option is considered ITM when the current price of the stock is greater than strike price of the
The married put, or synthetic call, is an options strategy which enables the trader to go long a stock with limited risk. The risk mitigation is done through purchasing a put which will protect the down
The speaker uses GOOG as an example to present how volatility affects options. He suggests that a calendar spread options strategy will benef
The speaker uses Google's stock to show an example of how to calculate implied volatility using microsoft excel. Implied volatility is a reverse engineering exercise which can be calculated given the price of the option, strike price, risk free rate of return, term
The speaker discusses the definition of implied volatility. He covers the difference between implied volatility and historical volatility; implied volatility is forward looking while historical volatility is backward looking. He uses google stock to provide an example of implied volatility at work.
The speaker discusses the definition of an "in the money" put option. An in the money put option suggests that the underlying security is trading at a price which is below the
The speaker covers how a put option is used for trading for income and insurance. He covers the basic features of a put option. He suggests that buying puts is an alternative method to shorting a stock, with a much smaller initial investment.
The speaker explains the basics of a put option. He uses a real life example to explain how the buyer of an option can make the seller buy the stock at the strike price if the stock moves lower. It is similar to an insurance policy.
The speaker discusses the short put, or naked put option. The speaker discusses how the trader will short a put if he/she believes that the market will move higher. He discusses the profit profile, breakeven points, and risk. Risk in this trade is unlimited as the stock moves lower.
The speaker reviews the basics of a put option and discusses how the put options allows the buyer of the option the ability to force the seller of the option to buy a stock at the strike price, even if the stock is much lower than the strike price. She talks through the risks and benefi
The speaker explains the basic definition of a call option and explains where to find a call option chain and how to look at it. He also covers the concepts of the strike price and expiration date
The speaker provides a detailed explanation of the call option. She covers the definition of the call option, discusses what an "at the money" call option is, and talks about how call options can allow the investor to command a large sum of money with a very
Suze Orman discusses the concept of the covered calls options strategy explains how it is created. She suggests that she enjoys writing covered calls in sideways to down markets as they can provide a steady stream of income.