Option Strategies
A trader can use options strategies to monetize their views on volatility, sentiment, and timing. This module explores various options strategies that can be built with a multi-dimensional approach involving Option Greeks, Risk-Return, etc.
14 chapters
Introduction to Option Strategies
Why combine options? Understanding directional, neutral, and volatility strategies.
Bull Call Spread
Reducing cost of bullish trades. Setting up and managing bull call spreads.
Bull Put Spread
Credit spread for bullish outlook. Risk-defined premium collection.
Bear Call Spread
Bearish credit spread strategy. Limited risk short call approach.
Bear Put Spread
Cost-effective bearish strategy. Debit spread for downside moves.
Long and Short Straddle
Trading big moves regardless of direction. Volatility explosion strategies.
Long and Short Strangle
Lower cost volatility plays. When to use strangles vs straddles.
Iron Condor
Range-bound strategy for premium collection. Setting up high probability trades.
Iron Butterfly
At-the-money premium collection. Tighter range, higher premium strategy.
Ratio Spreads
Unequal leg strategies. Ratio call and put spreads explained.
Calendar Spread
Trading time decay differences. Horizontal spreads across expiries.
Diagonal Spread
Combining vertical and horizontal spreads. Advanced income strategies.
Strategy Adjustments
Managing losing positions. Rolling, adjusting, and defending trades.
Choosing the Right Strategy
Framework for strategy selection based on market outlook and risk tolerance.