List of option trading strategies

Contents:
  1. What is Options Trading?
  2. Options Strategy | Complete Strategy Of Call/Put/Call Ladder | Guide & Best Practice
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  4. 10 Options Strategies to Know

Long Call.

What is Options Trading?

Long Call Option Strategy. Long Put. Long Put Option Strategy. Short Call. Short Call Option Strategy. Short Put. Short Put Option Strategy. Covered Call.

Options Strategy | Complete Strategy Of Call/Put/Call Ladder | Guide & Best Practice

Covered Call Option Strategy. Bull Call Spread. Bull Call Spread Option Strategy.

Bear Call Spread. Bear Call Spread Option Strategy. Bull Put Spread. Bull Put Spread Option Strategy. Bear Put Spread. Bear Put Spread Option Strategy. Call Backspread. Do remember that a long straddle can be a winning strategy if its implemented around major events, and the outcome of these events is different than general market expectations.

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A short straddle is an options strategy where you will have to sell both a call option and a put option with the same strike price and expiration date. This approach is a market neutral strategy. This signifies that the investor is placing a bet that the market won't move and would stay in a range.

SImilar to long straddle, a short straddle should be ideally deployed around major events. A strangle is a tweak of the straddle. This is done to lower the cost of trade implementation. A strangle requires you to buy out-of-money OTM call and put options.


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The short strangle is the exact opposite of the long strangle. This is a delta neutral options strategy. It is insulated against any directional risk. You have read about popular options strategies. To succeed in the options field, here are the things you need to know. Options Strategy. What is Bull Call Spread? What is Bull Put Spread? What is Synthetic Long and Arbitrage? What is Bear Put Spread? What is Bear Call Spread? What is Put Ratio Back Spread? What is The Long Straddle?

What is The Short Straddle? What is The Long and Short Strangle? What are things to know before trading in options? What is best strategy for option trading? All About Options Strategy Options provide 3 key benefits - increased cost efficiency, potential to deliver better returns and act as a strategic alternative. What are different types of strategies for trading in options? Similar to buying and selling in CFD trading ; we open a call option if we expect the price to rise or a put option if we predict a drop. Options come at the cost of the premium, which is based on the current price volatility — higher volatility implies higher premium.

There are two basic ways of trading options: buying long and selling short. When our trade is profitable, the option is in-the-money ITM ; when our trade makes a loss, the option is out-of-the-money OTM. If we break even, our trade would be at-the-money ATM. When we buy long call and put options, we trade congruently with our prediction.

If the option is. When we sell short call and put options, we trade incongruently with our prediction. Short call options may result in selling an asset at a strike price lower than the market price. Short put options may result in buying an asset at a strike price higher than the market price. Since you would be the writer of the option and assume the risk, you earn the premium when the position is opened, regardless of the future direction.

Whether you are novice or expert in options trading, receiving comprehensive support can elevate your results significantly. The beauty of trading options comes from the ability to make choices for multiple parameters. Extensive control over the variables allows you to incorporate various trading strategies depending on different market conditions such as trend direction, duration, and volatility. You predict that the price of the underlying asset will rise; if the expiration price is higher than the strike price, the difference is your profit.

Your maximum risk is limited to the premium you pay. Long calls are preferred when the market sentiment is bullish. You predict that the price of the underlying asset will fall; if the expiration price is higher than the strike, you profit from the difference.


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The maximum risk potential is limited to the premium. Traders prefer trading long puts when the market has a bearish sentiment. You can short calls when the market sentiment is ambiguously bullish or strongly bearish, and predict that the asset price will fall. The shorting premium is your fixed return.

If the expiration price is above the strike, the risk is limited to your stop loss.

Options Trading for Beginners (The ULTIMATE In-Depth Guide)

You can short puts when an ambiguously bearish or strongly bullish market is present, and you predict an increase in the asset price. Your return is fixed at the premium.

10 Options Strategies to Know

You profit if the expiration price is above the strike; but, if it is below the strike, you incur losses up to your stop loss. You use long straddle when you expect high volatility after a market event, but unsure about the direction. Your return is based on the difference between the expiration and strike prices of the winning in-the-money ITM option. A short straddle is used when you expect low volatility.

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