Dr. Jim takes today's lesson to focus on the potential gains and losses for the two sides of a contract: the short and the long. Anthony first learns that this all applies to both puts and calls.
With the short side, the potential gain is a known number, but the possible loss is very much unlimited. With the long side, it's the exact opposite: an unlimited potential gain and a limited, known possible loss. This all brings us to the question of the day: where would you want to be as a trader, on the long side or the short side?
Presented with these facts, Anthony errs to the long side with his answer, but it turns out to be the wrong choice. The tastytrade way will show us that the short side is preferred. Lastly, we are introduced to Anthony's signature sign off. Look close, it goes by fast!
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