Mindblown: a blog about philosophy.
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PUT RATIO SPREAD 1×2
A traditional Put Ratio spread is very easy to define, but not quite as easy to understand. In simple terms, it is just a basic Put Spread with selling an extra Put to help finance the Put Spread. For example: the 125/100 Put 1×2 is Buy the 125 Put once to sell the 100 Put…
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CALL RATIO SPREAD 1×2
A traditional Call Ratio spread is very easy to define, but not quite as easy to understand. In simple terms, it is just a basic Call Spread with selling an extra Call to help finance the Call Spread. AND BELOW IS OUR PROFIT AND LOSS GRAPH; For example: the 100/125 Call 1×2 is Buy the…
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BEAR SPREAD (BUY PUT SPREAD or SELL CALL SPREAD)
A PUT spread is an options strategy in which equal number of Put option contracts are bought and sold simultaneously on the same underlying security but with different strike prices. Put spreads limit the option trader’s maximum loss at the expense of capping his potential profit at the same time. In simple terms, you pay…
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BULL SPREAD (LONG CALL SPREAD or SHORT PUT SPREAD)
A Call Spread is an options strategy in which equal number of Call option contracts are bought and sold simultaneously on the same underlying security but with different strike prices. Call spreads limit the option trader’s maximum loss at the expense of capping his potential profit at the same time. In simple terms, you pay…
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US Initial Jobless Claims w/e 261k vs Exp. 235k (Prev. 232k, Rev. 233k) – highest since late 2021
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END OF DAY REPORT JUNE 7th
ITS ALL ABOUT RATES…A SURPRISE 25bp HIKE BY THE BoC SETS THE STAGE FOR THE FED NEXT WEEK. WE ARE NOW PRICING IN OVER A 90% CHANCE THAT THEY WILL GO AGAIN BY THE JULY MEETING.
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PUT OPTIONS
The simple textbook definition is a buyer of a Put option has the right (but not the obligation) to sell a specified quantity of a security at a specified price (strike price) within a fixed period of time (expiration date). Outright Put buying has almost unlimited upside with limited downside. Securities mostly don’t go below…
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CALL OPTIONS
The simple textbook definition is a buyer of a Call option has the right (but not the obligation) to buy a specified quantity of a security at a specified price (strike price) within a fixed period of time (expiration date). In theory, outright call buying has unlimited upside with limited downside. I say “unlimited in…
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Canadian BoC Rate Decision N/A 4.75% vs. Exp. 4.50% (Prev. 4.50%) Decided to increase the policy interest rate, reflecting our view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target.
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US Treasury Secretary Yellen says she sees a path to bringing down inflation while maintaining strong labour market; continue to see economic progress over the next two years in bringing inflation down – CNBC interview
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