The Rolling Straddle Hedge strategy involves: Building multiple Straddles using deep In-the-Money (ITM) Call &…
Option Strategy Table Summary
Sl.No. | Strategy Name | Market Outlook | Primary Objective | Risk Level | Profit Potential | Loss Potential | Strike Price Selection | How It Works |
1 | Covered Call | Moderately Bullish | Earn premium while holding stock | Low | Limited | Limited | OTM – Sell OTM call above current price. | Sell call against owned stock to collect premium. |
2 | Bull Call Spread | Moderately Bullish | Profit from limited price rise | Moderate | Limited | Limited | ATM & OTM – Buy ATM call, sell OTM call. | Buy lower strike call, sell higher strike call to reduce cost. |
3 | Bull Put Spread | Moderately Bullish | Profit if price stays above strike | Moderate | Limited | Limited | OTM & ATM – Sell OTM put, buy ATM put. | Sell put at higher strike, buy put at lower strike to limit risk. |
4 | Bull Call Ladder Spread | Moderately Bullish | Profits from steady price rise | High | Limited | Unlimited | ATM & OTM – Buy ATM call, sell two higher OTM calls. | Buy ATM call, sell two higher OTM calls for extra premium. |
5 | Bull Ratio Spread | Moderately Bullish | Profit from gradual price rise | Moderate | Limited | Unlimited | ATM & OTM – Buy ATM call, sell multiple OTM calls. | Buy one call, sell multiple higher strike calls. |
6 | Covered Put | Moderately Bearish | Earn premium while shorting stock | Low | Limited | Limited | OTM – Sell OTM put below current price. | Sell put against shorted stock to collect premium. |
7 | Bear Call Spread | Moderately Bearish | Profit if price stays below strike | Moderate | Limited | Limited | ATM & OTM – Sell ATM call, buy OTM call. | Sell call at lower strike, buy call at higher strike to limit risk. |
8 | Bear Put Spread | Moderately Bearish | Profit from limited price drop | Moderate | Limited | Limited | ATM & OTM – Buy ATM put, sell OTM put. | Buy put at higher strike, sell put at lower strike to reduce cost. |
9 | Bear Put Ladder Spread | Moderately Bearish | Profit from steady price drop | High | Limited | Unlimited | ATM & OTM – Buy ATM put, sell two lower OTM puts. | Buy ATM put, sell two lower OTM puts for extra premium. |
10 | Bear Ratio Spread | Moderately Bearish | Profit from gradual price drop | Moderate | Limited | Unlimited | ATM & OTM – Buy ATM put, sell multiple OTM puts. | Buy one put, sell multiple lower strike puts. |
11 | Iron Condor | Neutral | Profit from stable price range | Low | Limited | Limited | OTM & ATM – Sell closer OTM put & call, buy farther OTM put & call. | Sell closer OTM put & call, buy farther OTM put & call for protection. |
12 | Long Call Butterfly | Neutral | Profit if price stays near strike | Low | Limited | Limited | OTM, ATM, ITM – Buy lower & higher calls, sell 2 ATM calls. | Buy lower & higher calls, sell 2 middle calls. |
13 | Short Call Butterfly | High Volatility | Profit from big price move | Moderate | Limited | Limited | OTM, ATM, ITM – Sell lower & higher calls, buy 2 ATM calls. | Sell lower & higher calls, buy 2 middle calls. |
14 | Collar | Neutral to Slightly Bullish | Protect downside, cap upside | Low | Limited | Limited | OTM & ATM – Buy OTM put, sell OTM call. | Buy put for protection, sell call for premium. |
15 | Long Call Condor | Neutral | Profit from limited price movement | Low | Limited | Limited | OTM, ATM – Buy lower & higher calls, sell 2 middle calls. | Buy lower & higher calls, sell 2 middle calls. |
16 | Short Call Condor | High Volatility | Profit from large movement | Moderate | Limited | Limited | OTM, ATM – Sell lower & higher calls, buy 2 middle calls. | Sell lower & higher calls, buy 2 middle calls. |
17 | Long Straddle | High Volatility | Profit from large movement | High | Unlimited | Limited | ATM – Buy ATM call & put. | Buy ATM call & put to benefit from volatility. |
18 | Short Straddle | Low Volatility | Profit from minimal movement | High | Limited | Unlimited | ATM – Sell ATM call & put. | Sell ATM call & put to collect premium in stable markets. |
19 | Long Strangle | High Volatility | Profit from big price move | High | Unlimited | Limited | OTM – Buy OTM call & put. | Buy OTM call & put to benefit from large movements. |
20 | Short Strangle | Low Volatility | Profit from low movement | High | Limited | Unlimited | OTM – Sell OTM call & put. | Sell OTM call & put to collect premium in low volatility. |
21 | Long Call Calendar Spread | Neutral to Slightly Bullish | Profit from slow price rise | Low | Limited | Limited | ATM – Buy long-term call, sell short-term call. | Buy long-term call, sell short-term call. |
22 | Long Put Calendar Spread | Neutral to Slightly Bearish | Profit from slow price drop | Low | Limited | Limited | ATM – Buy long-term put, sell short-term put. | Buy long-term put, sell short-term put. |
23 | Protective Call | Bearish | Protect short position | Moderate | Unlimited | Limited | OTM – Buy OTM call for protection. | Buy OTM call to hedge against rising prices. |
24 | Protective Put | Bullish | Protect long position | Moderate | Unlimited | Limited | OTM – Buy OTM put for protection. | Buy OTM put to hedge against falling prices. |
25 | Rolling Straddle Hedge | Hedging | Hedge with deep ITM Calls & Puts, rolling across expiries & averaging positions | High | Unlimited | Limited to the total premium paid, but managed through adjustments | Deep ITM – Buy deep ITM Calls & Puts at different strikes and roll if needed | Buy multiple deep ITM Calls & Puts, add more if price moves against position, roll positions to later expiries to hedge risk and manage theta decay |