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Macro Musings with Jim Leitner

The Market Huddle

00:00

How to Reconcile Digital Options and Thought Processes

On digital options, you cannot really make enormous outside gains. If the spot continues to go in the direction that you had forecast, you just don't make extra. But if you just buy a regular call or you buy a stock, then you have infinite upside because crazy things can happen. And owning it without a maturity, knowing that someday it's either going to be worth zero, but it could also be worth an enormous amount.

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