Options Strategies

Bullish Strategies

You expect the stock to rise 12 plays

Long CallBeginner Buy a call to profit if the stock rises, with risk capped at the premium. Bull Call SpreadIntermediate Buy a call and sell a higher one to cap both the cost and the risk. Soon Bull Put SpreadIntermediate Sell a put spread to collect credit as long as the stock holds up. Soon Short PutIntermediate Sell a put to get paid for a bullish view and a price you would buy at. Soon LEAPS CallIntermediate A long-dated call that acts like cheaper stock for a patient bullish view. Soon Call CalendarIntermediate Sell a near-term call and buy a longer-dated one to lean bullish while selling time. Soon Call DiagonalAdvanced Blend strikes and expirations to lean bullish while collecting time decay. Soon Call Ratio BackspreadAdvanced Sell one call and buy two higher ones for a low-cost bet on a big rise. Soon Bull Call LadderAdvanced Add a short call above a bull call spread for extra credit with a capped top. Soon Risk ReversalAdvanced Sell a put to fund a call for a leveraged, low-cost bullish position. Soon Synthetic Long StockAdvanced Buy a call and sell a put to mirror owning the shares for less cash. Soon ZEBRAAdvanced A zero-extrinsic back ratio that tracks the stock with almost no time decay. Soon

Bearish Strategies

You expect the stock to fall 10 plays

Long PutBeginner Buy a put to profit if the stock falls, with risk capped at the premium. Soon Bear Put SpreadIntermediate Buy a put and sell a lower one to cap both the cost and the risk. Soon Bear Call SpreadIntermediate Sell a call spread to collect credit as long as the stock stays down. Soon Short CallAdvanced Sell a naked call for premium with a bearish view and undefined risk. Soon Put Ratio BackspreadAdvanced Sell one put and buy two lower ones for a low-cost bet on a big drop. Soon Put DiagonalAdvanced Blend strikes and expirations to lean bearish while collecting time decay. Soon Put CalendarIntermediate Sell a near-term put and buy a longer-dated one for a slow drift down. Soon Bear Put LadderAdvanced Add a lower short put to a bear put spread for extra credit. Soon Bearish Risk ReversalAdvanced Sell a call to fund a put for a leveraged, low-cost bearish bet. Soon Synthetic Short StockAdvanced Buy a put and sell a call to mirror shorting the shares for less cash. Soon

Neutral Strategies

You expect the stock to go nowhere 14 plays

Iron CondorIntermediate Sell a call spread and a put spread to profit from a quiet, range-bound stock. Soon Iron ButterflyIntermediate A tighter iron condor that collects more premium for a narrower range. Soon Short StrangleAdvanced Sell a call and a put to collect premium while the stock stays in a range. Soon Short StraddleAdvanced Sell a call and put at the same strike for maximum premium if price sits still. Soon Calendar SpreadIntermediate Sell near-term time and buy longer-term to profit from a stock that stalls. Soon Double CalendarAdvanced Two calendars at different strikes for a wider profit range on a quiet stock. Soon Long Call ButterflyAdvanced A cheap, defined-risk bet that the stock pins a specific price. Soon Long Put ButterflyAdvanced A put-based butterfly that profits if the stock pins a lower strike. Soon Broken Wing ButterflyAdvanced A skewed butterfly that can open for a credit with a directional lean. Soon Jade LizardAdvanced A short put plus a short call spread for premium with no upside risk. Soon Long CondorAdvanced A wider, cheaper butterfly with a flat profit zone between two strikes. Soon Double DiagonalAdvanced Diagonals on both sides for range-bound income with longer-dated protection. Soon Big LizardAdvanced A short straddle plus a call spread that removes all upside risk. Soon Short GutsAdvanced Sell an in-the-money call and put for a wide, high-premium range. Soon

Income Strategies

You want to collect steady premium 11 plays

Covered CallBeginner Own 100 shares and sell a call against them to collect premium as rent. Cash-Secured PutBeginner Sell a put with cash set aside to get paid while you wait to buy lower. Soon The WheelIntermediate Sell puts until assigned, then sell calls until called away, collecting at every turn. Soon Poor Man's Covered CallIntermediate Use a long-dated call instead of 100 shares to run a covered call for less cash. Soon Covered StrangleAdvanced Own stock and sell both a call and a put to double the premium income. Soon Ratio WriteAdvanced Sell more calls than you have stock to cover for a higher-income, higher-risk write. Soon Diagonal Call WriteAdvanced Sell short-dated calls against a long LEAPS call, month after month. Soon Dividend CollarAdvanced Collect a dividend while a collar caps both your risk and your upside. Soon Covered PutAdvanced Short stock and sell a put for income with a bearish-to-neutral lean. Soon Weekly Put SellingAdvanced Sell short-dated cash-secured puts each week for faster, smaller premium. Soon Monthly Income CondorAdvanced Sell a monthly iron condor for steady, defined-risk premium. Soon

Volatility Strategies

You expect a large move, or a change in volatility 12 plays

Long StraddleIntermediate Buy a call and a put at the same strike to profit from a big move either way. Soon Long StrangleIntermediate Buy an out-of-the-money call and put for a cheaper bet on a large move. Soon Reverse Iron CondorAdvanced Buy both spreads for a defined-risk bet that the stock breaks out of its range. Soon Reverse Iron ButterflyAdvanced A tighter reverse condor that pays more if the stock makes a sharp move. Soon Volatility Crush PlayAdvanced Sell inflated options before an event and profit when volatility collapses after. Soon VIX OptionsAdvanced Trade the market's fear gauge directly to hedge or speculate on volatility. Soon VIX SpreadAdvanced Use VIX call or put spreads to trade volatility with defined risk. Soon Gamma ScalpingAdvanced Trade the stock against a long-option position to harvest big daily swings. Soon Long GutsAdvanced Buy an in-the-money call and put for a straddle-like bet with less time value. Soon StrapAdvanced Two calls and one put for a big move biased to the upside. Soon StripAdvanced Two puts and one call for a big move biased to the downside. Soon Earnings StrangleAdvanced Buy a strangle before earnings to trade the expected move. Soon

Hedging Strategies

You want to protect stock you own 10 plays

Protective PutBeginner Buy a put on stock you own to set a floor under a possible drop. Soon CollarIntermediate Sell a call to pay for a protective put, capping both your risk and your upside. Soon Married PutBeginner Buy stock and a put together so your downside is insured from day one. Soon Costless CollarIntermediate A collar built so the call fully pays for the put, at zero net cost. Soon Protective Put SpreadAdvanced Buy a put spread for cheaper, partial downside protection. Soon Put Spread CollarAdvanced A collar that uses a put spread instead of a single protective put. Soon Portfolio Put HedgeAdvanced Use index puts to protect your whole portfolio from a broad downturn. Soon Index Put HedgeAdvanced Hedge a basket of stocks with broad index puts in one trade. Soon Tail Risk HedgeAdvanced Hold cheap far-out-of-the-money puts as insurance against a crash. Soon VIX Call HedgeAdvanced Own VIX calls that spike in value when the market drops hard. Soon

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