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”If you own shares and you are worried that the share price might fall, then sell some call options. As the share price falls, so will the value of the options. (You can buy back at a profit).”
this is an extract form the OT notes.my question is why shouldn’t we buy put options if we are worried that the share price might go down instead of selling the call options.
am confused with the flowing terminologies. buy call options, buy put options, sell call options, sell put options !!!??
.Have you watched my lectures working through the free notes (because it is pointless using the notes without watching the lectures. They are lecture notes, not a Study Text, and it is in the lectures that I explain and expand on the notes. If you are not watching the lectures then you need to buy a Study Text and study from there.)
We could buy put options, but creating a delta hedge involves selling call options and I do explain the reason for this in my free lectures (and obviously explain about buying and selling put and call options).
I do watch your lectures, and it is the best resources I have ever seen.
I took f1 up to p4 from OT and I cant compare to even the paid ones.I have understood the point, thanks.
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