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 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
An Iron Condor combines a Bull Put Spread and a Bear Call Spread to profit from minimal price movement within a range. It involves selling an OTM put and an OTM call and buying farther OTM put and call options for protection. Ideal for neutral markets, where price is expected to stay within a defined … Read more
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 the middle strike. Ideal for high-volatility conditions, where a large price move is expected. Strike … Read more
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 at expiry. Ideal for low-volatility conditions, where price is expected to remain range-bound. Strike prices … Read more