@@FabianMoa at 2:00 you say that we gain 6 dollars from longing the put and we lose 6 dollars from shorting the call. Isn't it the opposite ? We gain the premium when we short the call and we lose the premium when we long the put. The logic does not change but I just wanted to make sure ? Like at T0 shouldn't Short be at +6 and long be at -6 ?
hey since we have sold the calls & on expiry it turns to 0. then why aren't we calling it our profit. We made profit in our sold call right? then why are we counting it as 0.
Best layout of this concept I’ve seen. A+
Thanks for calling out the only diff between bull call spread and zero-cost collar is about underlying ownership!
I didn't realize that this is CFA level 3 info.. I'm just watching this for fun hahaha.
Nice breakdown! Thanks for some bed time refreshing on my day's studies. Good luck candidates! From Buffalo NY!
All the best in your prep!
Go bills
Fabian Moa does this work only if market is going up can it not work while going down?
Thank you sir.
very nicely explained sir.
Straddle and butterfly looks similar to me... So as collar and bull call spread...
Nope.. Straddle is long call+put simultaneously, if u're the long side
shouldn't you collect $6 premium from short call and total profit is $6+$8 when the stock price hits $48?
It's zero cost. You pay $6 to buy the put, offset from the $6 on writing the call
@@FabianMoa at 2:00 you say that we gain 6 dollars from longing the put and we lose 6 dollars from shorting the call. Isn't it the opposite ? We gain the premium when we short the call and we lose the premium when we long the put. The logic does not change but I just wanted to make sure ? Like at T0 shouldn't Short be at +6 and long be at -6 ?
hey since we have sold the calls & on expiry it turns to 0. then why aren't we calling it our profit. We made profit in our sold call right? then why are we counting it as 0.
I come from Billions S02E02 lol
me too!