• Facebook
  • Twitter
Top

Best Option Trading Basic Strategies

Options Strategies - Butterfly

Butterfly

A neutral strategy that is a combination of a bull spread and a bear spread. It is a limited profit, limited risk options strategy.

Options Strategies - Coveredcalls

Covered calls

The covered call is a strategy in options trading whereby call options are written against a holding of the stock.

Options Strategies - Credit Spreads

Credit Spread Option

A credit spread is an option spread strategy in which the premiums received from the short leg(s) of the spread is greater than the premiums paid for the long leg(s).

Options Strategies - Debit Spread

Debit spread

A debit spread is an option spread strategy in which the premiums paid for the long leg(s) of the spread is more than the premiums received from the short leg(s).

Options Strategies - Iron Condor

Iron Condor

The iron condor is a combination of a bull put spread and a bear call spread.

Options Strategies - Long Calls

Long calls

The holder (buyer) has the right to buy a specified quantity of a stock at a specified price (strike price) within a fixed period of time (until its expiration).

Options Strategies - Long Puts

Long puts

The holder (buyer) has the right to sell a specified quantity of a security at a specified price (strike price) within a fixed period of time (until its expiration).

Options Strategies - Naked Puts

Naked puts

An options trading strategy involving the selling of put options without shorting the obligated shares of the underlying stock.

Options Strategies - Straddle

Straddle

A neutral strategy in options trading that involves the simultaneously buying of a put and a call of the same underlying stock, striking price and expiration date.

Options Strategies - Strangle

Strangle

A neutral strategy that involves the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.