Long Call vs. Married Put - A Parity Trade? скачать в хорошем качестве

Long Call vs. Married Put - A Parity Trade?

Johann had asked us: 'Why Not use a LEAP Call instead of the Married Put structure, buying the stock and buying the put option?" This question comes up from time to time and we are always willing to share our thoughts: The risk-reward, Profit and Loss charts are similar - we don't argue that. However, only one satisfies the 3 Core Principles of trading. In this video we breakdown our preferred Married Put structure, take a look at s historical setup from January 25th and where the position stands now (0:00 to 9:27) We then compare that to the Same Strike, Same Expiration call option and evaluate the current return, risks and 'What-If' Scenarios between the two if the stock was trading at different stock prices out in time (9:30 to 14:35) Lastly we break down why we do not consider the Long Call to be a Parity to the Married Put structure, the risks of improper allocation and review of the 3 Core Principles. (14:40 to End). Enjoy!