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Patrick Boyle

Patrick Boyle

Patrick Boyle is a hedge fund manager, a university professor and a former investment banker.

This channel is all about quantitative finance. By subscribing you will see videos explaining what is happening in markets right now, you will learn about financial derivatives, corporate finance and how traders use quantitative tools like statistics. You will see interviews with some of the most interesting people in the financial industry. In addition, you will see some longer form documentaries on the history of financial markets.

To contact Patrick go to the website http://onfinance.org

DISCLAIMER:
This channel is not affiliated with any financial institution. The videos on this channel are for entertainment purposes only and do not constitute financial advice. Those seeking investment advice should seek out a registered professional. Patrick is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment.

Links:
Amazon Author Page: https://amzn.to/3bTeqed
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Website: https://www.onfinance.org/
Instagram: https://www.instagram.com/patrickeboyle/
BlueSky: https://bsky.app/profile/pboyle.bsky.social

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  • Today · 27 min

    Does Europe Have a Financial Nuclear Option?

    Click the link below to get started with Genspark and lock in unlimited access for all of 2026. https://www.genspark.ai/?utm_source=yt&utm_campaign=PBoyle Genspark includes unlimited usage of AI Chat and AI Image in 2026 — with top models available inside these features, including Nano Banana Pro, GPT Image, Flux, Seedream, Gemini 3 Pro, GPT-5.2, Claude Opus 4.5, and more. @GensparkProduct #Genspark #WorkwithGenspark The recent Greenland crisis at Davos 2026 has shattered transatlantic trust, forcing Europe to confront a terrifying new reality: the need for strategic autonomy from the United States. Faced with what it views as transactional coercion, Brussels is readying an arsenal of economic countermeasures, ranging from a "trade bazooka" targeting U.S. tech firms to the highly publicized "financial nuclear option"—the threat of dumping trillions in U.S. Treasuries. But before we panic about a bond market collapse, we need to examine the hard financial realities: Is weaponizing sovereign debt a viable strategy, or is it merely a macroeconomic suicide pact? This video dives into the mechanics of this potential economic war and the high cost of moving from an era of global efficiency to one of fearful autarky Michael Pettis Paper: https://carnegieendowment.org/china-financial-markets/2025/07/foreign-capital-inflows-dont-lower-us-interest-rates Martin Wolf Article: https://www.ft.com/content/e2c8c6c3-0cdc-4aa8-a47d-399407c75ad9 Richard Samans Paper: https://www.brookings.edu/articles/rebalancing-the-world-economy-right-idea-but-wrong-approach/ Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 16 min

    How to Price Options using a Binomial Tree (The Portfolio Approach)

    How to Price Options using a Binomial Tree. The portfolio approach. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle The Binomial Tree approach to options pricing involves constructing a diagram of the possible paths of the stock price over the life of the option and then calculating the present value of the final cash flows to determine the current option price. We will start with a simplified view of the world and explain the approach, then we will slowly adjust the model to make it more and more realistic. The Portfolio Approach For our first example we will start with an underlying that has a price of $50, and we know at the end of three months that the underlying will be at one of two prices, either $70 or $30 (this "foreknowledge" is in fact a very big assumption, but stay with us for a while and we will improve this admittedly hugely unrealistic assumption). We will price a European Call with a strike of $50, and one month to expiration. The only additional piece of information that we need in order to solve this problem is the interest rate, which we will set at 5%. The first step is to draw our tree putting in the spot price S0, the two ending prices of the underlying at T ST and the value of the call at expiration given the two ending prices c. If we know with certainty (a big assumption) that there are only two outcomes for the stock price at T and we assume that no arbitrages are freely available in marketplaces (a much better assumption) we can set up a portfolio of S and the derivative c on that same underlying where there is no uncertainty about valuations at T maturity. The portfolio will be some amount (delta) of S and short one call option c. If we set the two portfolios as equal and solve for delta  The portfolio is riskless if there is a value for delta where the two portfolios have an identical value at maturity in all possible scenarios. In either case above, the portfolio at expiration is worth $15. Because this portfolio is riskless we can discount it at the risk free rate (5%) for one months (1/12 of a year) to find the present value of the portfolio.  So far, we have found the interesting result that if we know the two next possible steps in an underlying assets price and we know the risk free interest rate we can price a derivative. The only problem we have is that our first assumption is quite unrealistic, but as you will see, we can keep working with this approach and make more reasonable assumptions as the chapter progresses. Notation As we move forward with binomial valuations, we will always be assuming a portfolio at each node knowing that some value for delta makes the portfolios equivalent at time T. It is important to note that we are not valuing the option in absolute terms. We are calculating its value as implied by the price and volatility of the underlying and the risk free rate. The probabilities of up and down movements are already incorporated in these prices and we don’t need to take them into account again when pricing the option which is based on the stock. All of our methods of valuing derivatives share this approach. People's expected returns for underlyings are irrelevant in this calculation, as all we are saying is that assuming the price for the underlying is X, then Y is the only fair price for the option, any other price would allow for arbitrage opportunities between the price of the underlying and the derivative. Watch tomorrows video to learn the risk neutral approach to pricing binomial trees. Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 32 min

    Don’t Say Epstein!

    Check out Cape and use code PBOYLE33 to get 33% off your first six months ➡️ https://www.cape.co/?utm_source=creators&utm_platform=youtube&utm_campaign=patrickboyle On January 22, 2026, TikTok officially became an "American" company. The $14 billion deal, brokered by a consortium of politically connected investors, was supposed to end the years of national security concerns and protect the data of 170 million US users. Instead, the new TikTok USDS Joint Venture has stumbled out of the gate with a series of "technical glitches" that look suspiciously like targeted censorship. From the inexplicable blocking of the word "Epstein" in direct messages to the suppression of protest videos in Minneapolis, the new management’s first week has raised a troubling question: did we actually solve the problem of algorithmic manipulation, or did we just ensure that the people doing the manipulating are the ones who helped broker the deal? This video examines the bizarre political U-turn that turned TikTok from a national emergency into a sweetheart deal for insiders. We look at the new owners, the incredibly invasive "biometric harvesting" hidden in the new Terms of Service, and the "Rational Business Actor" theory that suggests no company would be dumb enough to break its own product on day one. We also explore the "Mecha-Hitler" problem of content moderation, and why the "National Security" label may now be acting as a permanent shield against transparency for a platform that is now 100% domestic, 100% private, and perhaps, 100% MAGA. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 11 min

    Financial Options Pricing History. How do Investors Price Options?

    Financial Options Pricing History. Today we will learn How do Investors Price Options? These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Up to now we have looked at how options work and how they can be combined. We have mentioned options premium and how it is made up of time value and intrinsic value. In this video we will look at a few of the most common methods for pricing options. The value of options depends on a number of different variables in addition to the value of the underlying asset. They are complex to value and there are many pricing models in use. All models essentially incorporate the concepts of rational pricing, intrinsic value, time value, and put-call parity. In this video we will give you some insight as to how different variables affect option prices, and we hope to show you that while these methods are extremely useful, they are quite fallible, and can only give you an indication of fair value that is extremely dependent on the inputs into the formulas. The old “garbage in, garbage out” adage is particularly applicable to derivatives valuation—and most of financial mathematics. The formulas we will look at are only as good as the numbers that are put into them and often rely on a number of assumptions that do not always hold up in live securities market trading. They all rely on an estimate of volatility, and on an assumed distribution, that cannot be known in advance. In general, standard option valuation models depend on the following factors: • The current market price of the underlying security • The strike price of the option • The cost of holding a position in the underlying security, including interest and dividends • The time to expiration together with any restrictions on when exercise may occur • An estimate of the future volatility of the underlying security’s price over the life of the option. Options, or option-like contracts have been around for hundreds of years. Only in the 1970s was a formal pricing model introduced.. Options contracts are very similar to insurance contracts, and so most of the ideas used to price them came from the insurance business. As early as 1350 in Palermo, insurance contracts were common for casualty and credit risks relating to shipping. The two kinds of insurance were often being written separately. A popular contract was a conditional sale (similar to a put option) where the insurer agreed to purchase ship or cargo if it failed to arrive. Louis Bachelier (1870–1946) was a French mathematician credited with being the first person to model the stochastic process now called Brownian motion, which was part of his PhD thesis “The Theory of Speculation,” published in 1900. His thesis, which discussed the use of Brownian motion to evaluate stock options, is historically the first paper to use advanced mathematics in the study of finance. Thus, Bachelier is considered a pioneer in the study of financial mathematics and stochastic processes. Bachelier’s thesis was not well received because it attempted to apply mathematics to an unfamiliar area for mathematicians. We know the fair value of an options contract at expiration based upon the payoff diagrams, and we know that options are worth more than their value at expiration before the expiration date due to time value. Option value = Intrinsic value + Time value Before mathematical formulas existed for pricing options we knew that the fair value of options was higher than intrinsic value, as there was still time for the underlying to move in your favor, but not how much higher the price should be. Option prices, like all market prices, were just a capital weighted average of every market participant’s best gu Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 49 min

    The Devil Himself! - The Worst of The Epstein Files

    To learn for free on Brilliant for a full 30 days, visit https://brilliant.org/patrick/ or scan the QR code on screen. Brilliant’s also given our viewers 20% off an annual Premium subscription, which gives you unlimited daily access to everything on Brilliant. In today’s video, we examine the aftermath of the massive January 2026 data dump—three million pages of Jeffrey Epstein’s investigative files that the Department of Justice maintains contain no incriminating “client list”. We dive into the “Social Ponzi Scheme” that enabled decades of abuse, exploring the suspicious real estate transfers, cryptocurrency custodian links, and the international criminal probes that are currently toppling political giants across the globe. From the high-level PR strategies of the “Wall Street Renaissance Man” to the harrowing evidence of a eugenics-obsessed operation, we explore why this long-awaited transparency should not be confused with actual justice. As it turns out, when the powerful retreat into “vast carelessness,” it is often because they have spent years building a system designed to silence the questions they cannot answer. @2lazy2tryYT Video - https://www.youtube.com/watch?v=KT9td3FJxj8&t=68s Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 6 min

    What is a Warrant in Finance? Financial Derivatives - Stock Warrants

    Today we learn about what a warrant is in finance and what a warrant is in debt. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance In finance, a warrant is a security that gives the owner the right but not the obligation to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. Both are discretionary and have expiration dates. The word warrant simply means to "endow with the right", which is only slightly different from the meaning of option. Warrants are sometimes attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond and make them more attractive to potential buyers. Warrants can also be used in private equity deals. Frequently, these warrants are detachable and can be sold independently of the bond or stock. In the case of warrants issued with preferred stocks, stockholders may need to detach and sell the warrant before they can receive dividend payments. Thus, it is sometimes beneficial to detach and sell a warrant as soon as possible so the investor can earn dividends. Warrants are actively traded in some financial markets such as German Stock Exchange (Deutsche Börse) and Hong Kong. Warrants are very similar to call options. For instance, many warrants confer the same rights as equity options and warrants often can be traded in secondary markets like options. However, there also are several key differences between warrants and equity options: Warrants are issued by private parties, typically the corporation on which a warrant is based, rather than a public options exchange. Warrants issued by the company itself are dilutive. When the warrant issued by the company is exercised, the company issues new shares of stock, so the number of outstanding shares increases. When a call option is exercised, the owner of the call option receives an existing share from an assigned call writer (except in the case of employee stock options, where new shares are created and issued by the company upon exercise). Unlike common stock shares outstanding, warrants do not have voting rights. Warrants are considered over the counter instruments and thus are usually only traded by financial institutions with the capacity to settle and clear these types of transactions. A warrant's lifetime is measured in years (as long as 15 years), while options are typically measured in months. Even LEAPS (long-term equity anticipation securities), the longest stock options available, tend to expire in two or three years. Upon expiration, the warrants are worthless unless the price of the common stock is greater than the exercise price. Warrants are not standardized like exchange-listed options. While investors can write stock options on the ASX (or CBOE), they are not permitted to do so with ASX-listed warrants, since only companies can issue warrants and, while each option contract is over 1000 underlying ordinary shares (100 on CBOE), the number of warrants that must be exercised by the holder to buy the underlying asset depends on the conversion ratio set out in the offer documentation for the warrant issue. Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 32 min

    Epstein Files: The 6 Names the DOJ Didn't Want You to See

    Get an exclusive 15% discount on Saily data plans! Use code BOYLE at checkout. Download Saily app or go to https://saily.com/boyle The February 2026 release of unredacted Epstein files is finally revealing a stark reality: while billionaire CEOs are losing their jobs overseas within hours of being unmasked, the U.S. security apparatus is still actively covering up for the "Epstein Class." This video dives de into the congressional revelation of the "protected six," exposing the truth behind Leslie Wexner's secret $100 million settlement and the disturbing "torture video" emails that immediately toppled the CEO of DP World. We analyze why the FBI is still hiding crucial investigation files—like the 302 victim statements—while Ghislaine Maxwell receives a mysterious prison upgrade and offers conditional testimony. The names are finally out, but as this investigation proves, the cover-up is far from over. In this video we ask who are: Les Wexner and Sultan Ahmed bin Sulayem. Since the video was released after being questioned by The Guardian - the Department of Justice said that four of the men have no connection to Epstein whatsoever, but rather appeared in a photo lineup assembled by the southern district of New York (SDNY). https://www.theguardian.com/us-news/2026/feb/13/four-men-unredacted-epstein-files-no-ties-ro-khanna Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 6 min

    What is a Strangle? | Options Trading Strategies | Combining Options

    What is a Strangle? Options Trading Strategy - Options Combinations These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What is a Strangle? A strangle is an options strategy where the investor holds a position in both a call and put with different strike prices, but with the same expiration date and underlying asset. This option strategy is profitable only if the underlying asset has a large price move. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. What is Long Strangle? A long strangle is simultaneously buying an out of the money call and an out-of-the-money put option. This strategy has a large profit potential, since the call option has theoretically unlimited profit if the underlying asset rises in price, and the put option can profit if the underlying asset falls. The risk on the trade is limited to the premium paid for the two options. What is a Short Strangle? A short strangle is a neutral strategy and has limited profit potential. The maximum profit is equivalent to the net premium received for writing the two options, less any trading costs. A short strangle is selling an out of the money call and an out of the money put option. What is the Difference Between Strangle and Straddle? Long strangles and long straddles are similar options strategies that allow investors to gain from large potential moves to the upside or downside. However, a long straddle involves simultaneously purchasing at the money call and put options. A short straddle is similar to a short strangle and has a limited maximum profit potential that is equivalent to the premium collected from writing the at the money call and put options. Buying a strangle is generally less expensive than a straddle as the contracts are purchased out of the money. The counter-argument to this is that since the options are out of the money, the underlying will need to make a larger price move in order for the strategy to create a profit. Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 29 min

    Is the Global Trading System Breaking Down?

    🎶 Check out OpenDots ONE → https://sdqk.shokz.com/PatrickBoyle/zDbShuZW?utm_content=link In this video, we examine the implications of Trump’s latest trade deals —from the one-sided EU deal to politically charged moves against Brazil. Are the deals being structured to exclude China from global supply chains and are these tariffs just about trade, or something more? We explore how constant changes are disrupting business activity, whether manufacturing is really coming back to the U.S., and what history tells us about protectionism’s impact on innovation and productivity. Unhedged Podcast Link: https://podcasts.apple.com/us/podcast/the-eu-folds-on-tariffs/id1691284824?i=1000719679953 Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 34 min

    Bitcoin Is Crashing and Exchanges Freezing Up

    Take your personal data back with Incogni! Use code BOYLE at the link below and get 60% off an annual plan: https://incogni.com/boyle This video explores the 2026 "Deep Freeze" of the crypto market, analyzing why the "digital gold" thesis has failed to protect investors as Bitcoin lags behind the S&P 500 total returns. We dive into the "Victory Paradox"—the irony that Bitcoin’s institutional acceptance through Wall Street ETFs and a "crypto-friendly" presidency has tethered it to traditional financial risks, destroying its status as an uncorrelated asset. From the $12 billion losses at Michael Saylor’s Strategy Inc. and the liquidity crisis at institutional prime broker BlockFills to the Great AI Pivot in the mining industry, we break down the structural traps currently paralyzing the ecosystem. Featuring insights on "Financial Nihilism" from Demetri Kofinas, the "Juggalo Theory" of crypto subcultures from Zeke Faux, and the massive migration toward prediction markets like Kalshi and Polymarket, we ask the ultimate forward-looking question: now that Bitcoin is fully financialized, will it ever be an independent asset again? Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 5 min

    What is an Options Straddle? | Options Combinations | Trading Strategies

    What is a Straddle? Options Trading Strategy - Options Combinations These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle An options straddle involves buying a call and put with same strike price and expiration date. If the stock price is close to the strike price at expiration of the options, the straddle leads to a loss. However, if there is a sufficiently large move in either direction, a significant profit will result. A straddle is appropriate when an investor is expecting a large move in a stock price but does not know in which direction the move will be. The purchase of the two options is known as a long straddle, while the sale of the two options is known as a short straddle. What is a Long Straddle? A long straddle involves "going long," in other words, purchasing both a call option and a put option on some underlying. The two options are bought at the same strike price and expire at the same time. The owner of a long straddle makes a profit if the underlying price moves a long way from the strike price, either above or below. Thus, an investor may take a long straddle position if they think the market is going to be highly volatile, but they do not know in which direction it is going to move. This position is a limited risk, meaning the most a purchaser may lose is the cost of both options. At the same time, there is unlimited profit potential. This is quite an expensive options position as the trader is paying two premiums, so quite a large move is required to be profitable. What is a short straddle? A short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration date. The profit is limited to the premium received from the sale of put and call. The risk is virtually unlimited as large moves of the underlying security's price either up or down will cause losses proportional to the magnitude of the price move. A maximum profit upon expiration is achieved if the underlying security trades exactly at the strike price of the straddle. In that case both puts and calls comprising the straddle expire worthless allowing straddle owner to keep full credit received as their profit. This strategy is called "nondirectional" because the short straddle profits when the underlying security changes little in price before the expiration of the straddle. The short straddle can also be classified as a credit spread because the sale of the short straddle results in a credit of the premiums of the put and call. A risk for holder of a short straddle position is unlimited due to the sale of the call and the put options which expose the investor to unlimited losses (on the call) or losses limited to the strike price (on the put), whereas maximum profit is limited to the premium gained by the initial sale of the options. To learn more subscribe and watch Patrick's new videos which come out every day. Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 34 min

    The Winners and Losers from Trumps New Tariffs

    Check out Even Realities ➡️ https://evenrealities.bio/1998a1 #EvenRealities#EvenG2#EvenR1#MyEvenG2#everydaydisplay#smartglasses#aiglasses#displaysmartglasses In this episode, we explore the legal and economic fallout of the Supreme Court's landmark decision to strike down the "Liberation Day" tariffs, a move that has left the administration scrambling for a "Plan B". We dive into the "David vs. Goliath" story of VOS Selections, the tiny wine importer that successfully challenged the President's use of emergency powers, and examine why the new 10% flat-rate replacement may actually provide a competitive boost to China and Brazil while penalizing America's closest allies. From the bizarre world of "National Security Cabinets" to the $175 billion refund headache currently being exploited by "vulture" investors, we break down how tweeting out tariffs met its match in the U.S. Constitution. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 6 min

    What is a Butterfly Spread?

    What is a Butterfly Spread? - Options Trading Strategies Explained These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What is a Butterfly Spread? A butterfly spread is an option strategy that combines bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices. The trader sells two option contracts at the middle strike price, buys one option contract at a lower strike price, and buys another option contract at a higher strike price. Puts or calls can be used for a butterfly spread. The strategy is used when the trader believes the price of the underlying asset will not deviate much from the current price. Butterfly spreads have limited risk, and the maximum loss is the net premium paid to take the position. Profit is also capped. Long Call Butterfly Spread The long butterfly call spread is created by buying one in-the-money call option with a low strike price, writing two at-the-money call options, and buying one out-of-the-money call option with a higher strike price. A net debit is created when entering the trade. Short Call Butterfly Spread The short butterfly spread is created by selling one in-the-money call option with a low strike price, buying two at-the-money call options, and selling an out-of-the-money call option at a higher strike price. A net credit is created when entering the position. This position profits if the price of the underlying moves toward the upper or lower strike price. Long Put Butterfly Spread The long put butterfly spread is created by buying one put with a lower strike price, selling two at-the-money puts, and buying a put with a higher strike price. A net debit is created when entering the position. Like the long call butterfly, this position has maximum profit when the underlying stays at the strike price of the middle options. Short Put Butterfly Spread The short put butterfly spread is created by writing one out-of-the-money put option with a low strike price, buying two at-the-money puts, and writing an in-the-money put option at a higher strike price. This strategy profits if the underlying moves toward the upper or lower strike prices. Iron Butterfly Spread The iron butterfly spread is created by buying an out-of-the-money put option with a lower strike price, writing an at-the-money put option with a middle strike price, writing an at-the-money call option with a middle strike price, and buying an out-of-the-money call option with a higher strike price. The result is a trade with a net credit that's best suited for lower volatility scenarios. The maximum profit occurs if the underlying stays at the middle strike price. Reverse Iron Butterfly Spread The reverse iron butterfly spread is created by writing an out-of-the-money put option at a lower strike price, buying an at-the-money put option at a middle strike price, buying an at-the-money call option at a middle strike price, and writing an out-of-the-money call option at a higher strike price. This creates a net debit trade that's best suited for high-volatility scenarios. Profit occurs when the price of the underlying moves toward the upper or lower strike prices. Commissions can add up when trading butterfly spreads because of the multiple options positions involved. Watch Patrick's other videos on Options. https://www.youtube.com/watch?v=qKMIFvgt8wI&list=PLHC72UlhAthA_t0MRcYRxYp2NZRIXSVWA Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 31 min

    The UK is a Warning to the Rest of the World

    If you are curious and want to try it yourself, Tailor Store is offering 25% off your order for my viewers. Use my link https://www.tailorstore.com/patrickboyle so you can take a look whenever it suits you. In this video, we explore why the United Kingdom has transitioned from a global economic powerhouse to a stark warning for other advanced nations. While the United States has surged ahead since the 2008 financial crisis, Britain has remained trapped in a "productivity puzzle" driven by a series of compounding errors—from a punitive tax code that discourages its most skilled workers to a housing market that functions more like a closed shop than a place to live. We’ll analyze how decades of under-investment, a rigid post-Brexit labor market, and a "Bunker Economy" that prioritizes asset protection over growth have created a zero-sum political landscape. As the "graduate premium" collapses and a "Lost Million" of young people fall through the cracks, we ask the critical question: can the UK finally find the political courage to unpick the structural anchors dragging it down, or is this the new permanent reality for the once-mighty "workshop of the world"? Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Today · 7 min

    The Minimum Variance Hedge Ratio and Beta Hedging using Futures

    These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle One problem with using financial futures contracts to hedge a portfolio of assets, is that a perfect futures contract may not exist. Thus a perfect hedge cannot be achieved. An example would be, if an airline company executive wished to hedge the company's exposure to jet fuel prices, and found that there was no jet fuel futures market or if they found that a futures market exists but it is so illiquid that it is functionally useless. The CFO then needs to find a way to use a different contract that is highly correlated with the underlying asset and has a similar variance. This is done using the minimum variance hedge ratio. The minimum variance hedge ratio (or optimal hedge ratio) is the ratio of futures position relative to the spot position that minimizes the variance of the position. In this video we will learn how to do this calculation. We also learn how to use beta in hedging a portfolio of stocks using S&P500 index futures. minimum variance portfolio. beta hedging equity portfolio Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Yesterday · 32 min

    SpaceX IPO Scandal

    Get an exclusive 15% discount on Saily data plans! Use code BOYLE at checkout. Download Saily app or go to https://saily.com/boyle SpaceX is targeting a $1.75 trillion valuation for what could be the largest IPO in history. In this video, we examine how Elon Musk is folding a money-burning AI startup and a struggling social media platform into a rocket company to justify a price tag that defies financial gravity. From the engineering absurdity of "orbital data centers" and lunar railguns to the structural manipulation of the Nasdaq 100, we explore how low-float strategies and "fast-track" index inclusion rules are being used to turn passive 401(k) investors into exit liquidity for insiders. We look at the gap between EBITDA "vibes" and GAAP reality and the pivot from Mars to the Moon. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Yesterday · 9 min

    What is a Put Spread? | Options Trading Strategies | Option Combinations

    What is a Put Spread? - Options Trading Strategies These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What is an Options Put Spread? A put spread is an option spread strategy that involves buying and selling an equal number of put options simultaneously. Unlike the put buying strategy in which the profit potential is unlimited, the maximum profit generated by put spreads are limited but this strategy is relatively cheaper to employ. Unlike the outright purchase of put options which might only be employed by bearish investors, put spreads can be constructed to profit from a bull, bear or neutral market. One of the most basic spread strategies to implement in options trading is the vertical spread. A vertical put spread is created when the short puts and the long puts have the same expiration date but different strike prices. Vertical put spreads can be bullish or bearish. The vertical bull put spread, or 'bull put spread', is used when the option trader thinks that the underlying security's price will rise before the put options expire. The vertical bear put spread, or 'bear put spread', is employed by the option trader who believes that the price of the underlying security will fall before the put options expire. What is a Calendar (Horizontal) Put Spread? A calendar put spread is created when long term put options are bought and near term put options with the same strike price are sold. Depending on the near term outlook, either the neutral calendar put spread or the bear calendar put spread can be employed. What Is a Neutral Calendar Put Spread? When the option trader's near term outlook on the underlying is neutral, a neutral calendar put spread can be implemented using at-the-money put options to construct the spread. The main objective of the neutral calendar put spread strategy is to profit from the rapid time decay of the near term options. What is a Bear Calendar Put Spread? Investors employing the bear calendar put spread are bearish on the underlying on the long term and are selling the near term puts with the intention of riding the long term puts for a discount and sometimes even for free. Out-of-the-money put options are used to construct the bear calendar put spread. What is a Diagonal Put Spread? A diagonal put spread is created when long term put options are bought and near term put options with a higher strike price are sold. The diagonal put spread is actually very similar to the bear calendar put spread. The main difference is that the near term outlook of the diagonal bear put spread is slightly more bearish. If you are new to options and derivatives make sure you watch Patricks other videos on this topic. The videos are mostly separated into playlists sorted by topic. Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Yesterday · 29 min

    The $3.5 Trillion Crisis No One Is Talking About

    If you’re ready to level up your AI leadership skills, head to https://masterclass.yt.link/5o4X21q to get 15% off the Lead with AI Certificate from MasterClass and Microsoft. While the world is distracted by global conflict, a panic is building in the private credit market. In this video, we go inside the opaque world of Private Credit - examine the "Golden Age" of lending that is rapidly turning into a slow-motion crisis. From the "volatility laundering" tricks used by managers to hide billion-dollar losses to the "Exit Trap" currently catching retail investors in BDCs, we explore how the search for yield led Wall Street directly to your 401(k). We look at why insiders like Boaz Weinstein are calling this a scandal, and what happens to the 48 million Americans whose jobs depend on the fragile financial plumbing when the credit finally contracts. Is this a repeat of 2008, or something much quieter but much harder to escape? Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Yesterday · 9 min

    What is a Call Spread? Financial Options - Financial Derivatives

    What is an options call spread? These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What is a Call Spread? What is a Bull Call Spread? A bull call spread is an options strategy used when a trader is betting that a stock will have a limited increase in its price. The spread involves buying call options at a specific strike price and expiration date and selling an equal number of calls at a higher strike price for the same expiration date. A bull call spread is a type of vertical spread. An option position in which a call is purchased while another call on the same security is sold short. The two calls have different strike prices, different expiration dates, or both. Also called option spread. What is a Bull Call Spread? Bull call spreads are an options strategy that involves purchasing call options at a specific strike price ,while also writing the same number of calls on the same asset and expiration date but at a higher strike price. A bull call spread is used when a moderate rise in the price of the underlying asset is expected. How does it work? Since a bull call spread involves writing call options that have a higher strike price than that of the long call options, the trade requires an initial cash outlay, as you spend money on options premium. The maximum profit in this strategy is the difference between the strike prices, less the net cost of options. The maximum loss is limited to the net premium paid for the options. A bull call spread's profit increases as the underlying security's price increases up to the strike price of the written call option. If the underlying stock price increases beyond the strike price of the written option, the profit on the trade does not increase. Conversely, if the price falls below the strike price of the bought call option, losses are limited to the cost of the buying options. Make sure you watch Patrick's other videos on options combinations. Tomorrow we will look at put spreads and the next day at Butterfly Spreads. If you are new to options watch the playlist "An Introduction to Options" Trading and Pricing Financial Derivatives Learn more about your ad choices. Visit megaphone.fm/adchoices

  • Yesterday · 32 min

    The Crisis Hidden Inside the Iran War

    Take your personal data back with Incogni! Use code BOYLE at the link below and get 60% off an annual plan: https://incogni.com/boyle Equity markets have spent the past month treating the war in Iran like a minor inconvenience — a 'buy the dip' opportunity rather than a structural crisis. But while stock traders debate whether the President will 'TACO out' of the conflict, the real story is unfolding in the commodities that never make the headlines: LNG, helium, fertilizer, and aluminium. With the Strait of Hormuz effectively closed, Qatar's liquefaction plants in ruins, and Oxford Economics estimating the waterway will remain largely impassable until May, no Truth Social post is going to fix this. In this video, we look at why the physical damage to the region's infrastructure means the economic fallout will be felt long after the shooting stops — and why the winners and losers of this crisis are not who you'd expect. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

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