: An aggressive strategy where you sell one ATM call and buy two or more OTM calls. It profits from high upward volatility with limited downside risk. 10 Options Strategies Every Investor Should Know
These strategies profit when you expect a big move but are unsure of the direction.
: Similar to a straddle, but you buy out-of-the-money (OTM) calls and puts. This is cheaper to enter than a straddle but requires a larger price swing to reach profitability. 3. Advanced Buying & Spread Strategies option buying strategies
: Combines a long stock position with a long put option to create a "floor" for potential losses. It acts as an insurance policy for your existing holdings. 2. Volatility Strategies (Non-Directional)
: You buy an at-the-money (ATM) call and put with the same strike and expiry. It is most effective before major events like earnings or rate cuts. : An aggressive strategy where you sell one
: Used when you are bullish . You buy a call option expecting the stock price to rise significantly above the strike price plus premium.
: Buy a higher-strike put and sell a lower-strike put. It limits both potential loss and reward while making the trade more cost-effective. : Similar to a straddle, but you buy
: Buy a lower-strike call and sell a higher-strike call. This reduces the net premium paid and lowers the break-even point.