A Short Call Butterfly involves selling one call option at a lower strike, buying two call options at a middle strike, and selling one call option at a higher strike. It profits from significant price movement outside the range of…
A Long Call Butterfly involves buying one call option at a lower strike, selling two call options at a middle strike, and buying one call option at a higher strike. It profits when the price stays near the middle strike…
A Bull Put Spread involves selling a put option at a higher strike price and buying a put option at a lower strike price. It profits from moderate price increases or stability. Ideal for moderately bullish conditions, where the price…
A Bull Call Spread involves buying a call option at a lower strike price and selling a call option at a higher strike price. It profits from moderate price increases. Ideal for moderately bullish conditions, where a limited price rise…
A Short Strangle involves selling a call option and a put option at different strike prices but the same expiry. It profits from minimal price movement within the range. Ideal for low-volatility conditions, where the price is expected to stay…
A Long Strangle involves buying a call option and a put option at different strike prices but the same expiry. It profits from significant price movement in either direction. Ideal for high-volatility conditions, where a large price move is expected…
Greek Meaning Impact on Option Price Behaviour Best Usage Example (Nifty/Bank Nifty) Delta (Δ) Measures how much an option’s price changes with a 1-point move in Nifty/Bank Nifty. Higher Delta = Greater price movement with the index. ITM options have…
A Short Straddle involves selling a call option and a put option at the same strike price and expiry. It profits from minimal price movement. Ideal for low-volatility conditions, where price movement is expected to remain stable. Selling ATM options…
A Long Straddle involves buying a call option and a put option at the same strike price and expiry. It profits from significant price movement in either direction. Ideal for high-volatility conditions, where a large price move is expected but…
A Protective Put is a hedging strategy where you buy a put option to protect a long position in the underlying. It limits losses if the price unexpectedly falls. Ideal for bullish conditions, where there is a risk of price…