Algorithms for Life (guest: Jim Leitner)
The Market Huddle
00:00
Is the Market Getting Smarter About Calls?
The market is getting smarter about the cheapness of calls a versus the expensiveness of puts. People pay up for puts, and therefore there's always a higher volatility for puts. The further away from to day's spot price of where the stock is you go, the more that volatility goes up. So actually, calls are better investments than puts because you have upside that is not truncated.
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