Options Trading for Macro Investors | Imran Lakha
Forward Guidance
00:00
How to Blend Options Trading to Create Exposures That Investors Don't Have Access To
The payoff of a call option is zero because you don't end up making that choice to buy the stock, right? Meaning your calling option expires worthless. If I bought the stock at 100, then I would just have a 45 degree line through 100. And if the stock went down, I would lose $1 for every dollar that it went down. So that's why we have this discontinuity because at that strike price, which is 100, you have a choice.
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