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…
A Bull Ratio Spread involves buying one call option at a lower strike price and selling multiple call options at higher strike prices. It profits from moderate price increases but carries higher risk if the price rises sharply. Ideal for…
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…
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…
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…