In this episode of the Options Boot Camp, "Let's Get Exotic With Knock-out And Knock-In Options," hosts Mark Longo and Dan Passarelli dive into the world of exotic options, specifically barrier options. These are contracts that activate or deactivate when the underlying asset hits a predetermined price level. The discussion is broken into two main types: Knock-out options and Knock-in options.
00:00 - Welcome to Options Bootcamp
04:20 - Explaining Barrier Options (Knock-outs and Knock-ins)
06:05 - Diving into Knock-out Options
10:25 - The Limited Use Case and Cheaper Price Tag
13:40 - Exploring Knock-in Options
18:25 - The Cons of Exotic Options
22:50 - Final Thoughts