#Brian moneymoney money full
#Brian moneymoney money plus

If you’re lucky and your short OTM put vertical expires worthless, that’s it. Related Link: Who's Ready To Cheer Rising Rates? The Financial Sector

#Brian moneymoney money plus

The combination of price plus activity translates into tighter markets for the OTM verticals. They’re also less expensive than ITM spreads. And because you can sell the OTM options against your stock position to generate income, there’s just more activity in them all around. That’s because more retail participants trade them. OTM verticals are typically easier to trade because they tend to be more liquid. It’s really about the “tradability” of each. So what’s the difference? It has nothing to do with theory and everything to do with practical trading. But as far as risk/reward goes, they’re the same. One is created with calls, the other, with puts. That’s why the short put vertical and the long call vertical are synthetically the same. And break-evens? They’re the same-both at $83.50.

If XYZ goes to $100, the profit on either is $150. How’s that? If XYZ goes to zero, the max loss on either spread is the same ($350). If you pick your favorite stock XYZ trading at $90, and sell the Sep 80/85 put vertical by selling a Sep 85 put and buying a Sep 80 put for a net credit of 1.50, that has the same risk/reward as buying the Sep 80/85 call vertical, which is buying a Sep 80 call and selling a Sep 85 call for a 3.50 debit. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.For the most part, the same risk means the same reward. The views expressed in this video are solely those of John Stossel his independent production company, Stossel Productions and the people he interviews.

#Brian moneymoney money full

You can see the full documentary on some PBS stations, or stream it at:. Today, most economists oppose it.īut Stossel says Forbes' documentary sums up the history nicely and 'will give you background to help you decide what you think.' Milton Friedman opposed the gold standard. 'Gold has proven to be the preferred monetary standard,' says Brian Domitrovic, a history professor at Sam Houston State University. 'The only way to restore trust is for the United States to return to the system that worked for most of its history,' the narrator says. That's largely because the Federal Reserve intentionally creates 2 percent inflation every year-they set it at 2 percent rather zero because it provides a buffer against deflation, which they fear will cause recessions.įorbes' documentary backs a return to the gold standard. A dollar buys 80 percent less than it did when Nixon took the country off gold in 1971. But dollars are not backed by gold, or anything else. People use them because they trust that others will value them, and because the government says it stands behind them. Today, the Federal Reserve controls the supply of dollars. Shelton is under consideration to be President Trump's next Federal Reserve pick. 'All kinds of constitutional freedoms, and this moral commitment to maintain the value of the money, were swept out,' says Judy Shelton, director of the Sound Money Project at the Atlas Network. during the Great Depression, President Franklin Roosevelt even confiscated private holdings of gold in order to devalue the dollar. 'And after losing the war, Germany suffered the infamous Weimar hyperinflation.' went off gold,' the documentary's narrator notes. 'To print money to pay for the conflict, Europe and the U.S. World War I was the first big event that shook up the consensus around gold. Governments throughout history have often resorted to inflation when they couldn't raise enough taxes. The re-issued coins, critically, also contained less gold than the old ones. 'They would call in all the coins, melt them down, reissue them-of course, with his picture on them,' according to Jack Weatherford, author of The History of Money. The Roman Emperor Nero was one of the early creators of inflation. The stability it brought to markets helped enable massive economic growth.īut a gold standard didn't always ensure stability. They tried all sorts of things, including backing money with crops, silver, and salt. 'Salt' is where our word 'SALary' comes from.Įventually, most people settled on gold, which was used up through the mid-1900s to back currency. Stossel presents an abbreviated version of the documentary, which notes that throughout history, people needed a way to assign a fixed value to money. Imagine if that floated each day that would make life chaotic.' We have 'sixty minutes in an hour sixty seconds in a minute. 'It has to be fixed in value,' says Steve Forbes in his new documentary, In Money We Trust?įorbes notes that money has to be reliable, like a clock.