Series 7 Exam :Option Collars

09/01/2024 6 min Temporada 2 Episodio 88
Series 7 Exam :Option Collars

Listen "Series 7 Exam :Option Collars"

Episode Synopsis

Send us a textKenneth discussed the concept of a "collar" strategy in stock trading. They explained that this strategy, which involves buying a put option and selling a call option, is used to protect against market downturns while also limiting potential gains. They demonstrated the calculations involved in the strategy, highlighting that the break-even point is the sum of the premium received and the cost spent, minus the premium received. Kenneth also showed an example of a cashless collar scenario, emphasizing that the maximum loss with this strategy is 5, while the maximum gain is also 5. They concluded by inviting listeners to join their live sessions to learn more.https://youtu.be/zrlWKdosa7w?si=HL9yzAhxROmO3GB5  📚 About the Podcast Real-world finance explained the way exams and real life actually test it. Ideal for the SIE, Series 7, Series 65/66, and anyone who wants to actually understand money—not just memorize buzzwords. ⚠️ Disclosure This podcast is for educational purposes only and is not a recommendation to buy or sell any security. Opinions expressed are solely those of the host. 🚀 Go Deeper Live classes, tutoring, practice questions, and bonus content: 👉 Website / Classes: https://capitaladvantagetutoring.com 👉 YouTube: https://youtube.com/@Series7exam 👉 Substack:https://substack.com/@series7whisperer? New episodes weekly — subscribe so you don’t miss one.