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 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 Bear Ratio Spread involves buying one put option at a higher strike price and selling multiple put options at lower strike prices. It profits from moderate price decreases but carries higher risk if the price falls sharply. Ideal for moderately bearish conditions, where a limited price drop is expected. Buying an ATM put and … Read more
A Bear Call Spread involves selling a call option at a lower strike price and buying a call option at a higher strike price. It profits from a moderate price decline or stability. Ideal for moderately bearish conditions, where price is expected to stay below the lower strike price. Selling a slightly OTM call generates … Read more
A Covered Put is a strategy where you short the underlying (e.g., BANKNIFTY Futures) and sell a put option at a lower strike price to earn premium income. It works best when the underlying price is expected to fall slightly but stay above the strike price. Ideal for moderately bearish conditions, where a modest price … Read more