Options Jive

Monday – Friday | 8:40 – 9:00a CT

Buying Stock with Calls and Puts

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We often buy stock or an ETF for two reasons: the position is part of our core bias OR we are buying while the market is at a recent price extreme. No matter the reason behind getting long a given market, we must put our plan into action and that usually utilizes options for capital efficiency.

Today’s debate centers around the comparison between buying calls and selling puts in the aim of generating long deltas.

Both have their pros and cons:

  • Long calls have infinite profit potential
  • Long Calls require less buying power versus selling puts
  • Short Puts have the ability to profit from no movement in the underlying market.

Tom and Tony review all of these attributes while adding some historical context as well in today’s edition of Options Jive. Watch the above video for a more detailed comparison of long calls and short puts.

Options Jive More installments

See All »

Latest tastytrade Videos As of October 23

Most Shared From the last 30 days