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.
Covered calls
The covered call is a strategy in options trading whereby call options are written against a holding of the stock.
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).
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).
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).
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).
Naked puts
An options trading strategy involving the selling of put options without shorting the obligated shares of the underlying stock.
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.
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.