Today, Dr. Jim steers Anthony through putting on a Short Put - his very first Short Put. But first, Anthony works through his homework from over the weekend, where he was asked to walk us through the intrinsic and extrinsic values on the call side for both in-the-money (ITM) and out-of-the-money (OTM) strikes. Anthony comes prepared and nails the analysis!
For the Short Put, Anthony uses his understanding of OTM strikes to sell the 22 strike. The guys also buy the 15 strike put to limit the capital required for the trade and work around the IRA restrictions.
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