[Will49]

Ah okay John, thanks for helping clear this up for me.

This is my first forum post so I’d also like to say thanks so much for all the videos and materials you and everyone at OT have produced – they’re invaluable!

[Will49]

Hi John,

I’ve just gone back over the Delta Hedge lecture, and I do appreciate that you do explain that by selling a call option, you hedge against a fall in the share price – because as the share price falls, you make profit from the option.

However I still don’t understand what the difference is between selling a call option and buying a put option. With either choice you’d make a profit on the option from a drop in the share price right?

Sorry I don’t seem to be firing on all cylinders with this topic.

[Author]

Posts