In this video, Dan Passarelli dives into the strategy of ratio call writing, exploring how it works and when it might (or might not) make sense to use it.
Learn the difference between covered calls and ratio call writing, and why adding extra short calls to your strategy can be risky.
Dan uses Apple stock as an example to demonstrate the potential risks and rewards, breaking down P&L diagrams and explaining the scenarios where this approach could be applied. If you've ever been curious about ratio call writing, this video will give you the insights you need to make informed decisions.
Key Topics Covered:
What is ratio call writing?
How does it differ from covered calls?
Risks of being short additional units.
Analyzing ratio call writing on Apple stock.
Why Dan usually avoids this strategy.
Watch now to gain a deeper understanding of this advanced options strategy and decide if it aligns with your trading style.
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