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 … Read more
A Bear Put Spread involves buying a put option at a higher strike price and selling a put option at a lower strike price. It profits from a moderate price decline and helps reduce the cost of buying a put option by selling another put. Significance: Ideal for moderately bearish conditions, where a limited price … Read more
A Collar strategy involves holding a long position in the underlying asset while simultaneously buying a put option for downside protection and selling a call option to generate premium income. It is typically used to limit potential losses while capping potential gains. Significance: Ideal for neutral to slightly bullish conditions, where an investor wants to … Read more
A Long Call Calendar Spread involves buying a long-term call option and selling a short-term call option at the same strike price. It profits from time decay and minimal price movement in the short term. Ideal for neutral to slightly bullish conditions, where minimal price movement is expected in the short term. Buying the longer … Read more
A Short Call Condor involves selling two call options at middle strikes and buying one call option each at lower and higher strikes. It profits from significant price movement outside the range of the middle strikes. Ideal for high-volatility conditions, where a large price move is expected. Strike prices are equidistant (lower, middle, and higher … Read more
A Long Call Condor involves buying one call option at a lower strike, selling two call options at middle strikes, and buying one call option at a higher strike. It profits when the price stays within a defined range near the middle strikes. Ideal for low-volatility conditions, where the price is expected to remain stable. … Read more
A Bear Put Ladder Spread involves buying one put option at a higher strike price and selling multiple put options at lower strike prices. It profits from limited price decreases but carries risk if the price falls sharply. Ideal for moderately bearish conditions, where a limited price drop is expected. Selling additional OTM puts increases … Read more
A Bull Call Ladder Spread involves buying one call option at a lower strike price and selling multiple call options at higher strike prices. It profits from a limited price rise but carries risk if the price rises sharply. Ideal for moderately bullish conditions, where a limited price rise is expected. Selling additional OTM calls … Read more