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so hedging and why do they call it that well a hedge establishes the boundaries around somebodys property if im doing a hedged position im not always going to eliminate risk but im either going to reduce it to a place where i can sleep or im going to use my stack to get a little bit of money coming in to offset some of my risk if i already own stock that means im bullish so to hedge i bet the other way i use a bearish position and if ive sold short im a bear so hedge im going to bet the other way with a bullish position were going to look at just the first in this lesson so remember if i buy a call im just buying the right to buy stock at the strike price i want the upside i dont want to pay the full price right now the seller of the call takes on the obligation to deliver the stock at the strike price doesnt matter how much he or she has to pay thats their problem if they sell the call if i buy a put i get the right to put or sell the stock at a strike price and then who
