A Little Volatility Goes A Long Way

Listen to Advisors Option 65: A Little Volatility Goes A Long Way

Tricks of the Trade featuring
Special Guest Co-Host: Jon Cherry, Head of US Options, Northern Trust – Capital Markets.

  • Looking back at the recent tariff-induced market volatility.
  • We’ve seen violent selloff and equally violent rallies.
  • What are your thought on the recent market volatility?
  • How can options be implemented on behalf of clients in these types of markets?

The Buzz: What do informed advisors need to know?

Office Hours: What is on your mind?

  • Question from Ed Bankert – Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
  • Comment from Tom -Let’s be honest. If any of us had size bitcoin we would have sold out ages ago and probably be kicking ourselves right now.
  • Question from JohnnyBananas -Quick question, if you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth $ even if it’s 3$ under – even though my strike price is 5$?? So if the stock price is $7 drop to 5(strike), but end up going to 3, my option is worth ~$4? So I don’t have to sell if I reach my strike price? Is this the same with call options? What confuses me is the strike$. #learning