Option Strategy Table Summary

Magesh Kumar

2 weeks ago

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 from limited price rise	Moderate	Limited	Limited	ATM & OTM – Buy ATM call, sell OTM call.	Buy lower strike call, sell higher strike call to reduce cost.
3	Bull Put Spread	Moderately Bullish	Profit if price stays above strike	Moderate	Limited	Limited	OTM & ATM – Sell OTM put, buy ATM put.	Sell put at higher strike, buy put at lower strike to limit risk.
4	Bull Call Ladder Spread	Moderately Bullish	Profits from steady price rise	High	Limited	Unlimited	ATM & OTM – Buy ATM call, sell two higher OTM calls.	Buy ATM call, sell two higher OTM calls for extra premium.
5	Bull Ratio Spread	Moderately Bullish	Profit from gradual price rise	Moderate	Limited	Unlimited	ATM & OTM – Buy ATM call, sell multiple OTM calls.	Buy one call, sell multiple higher strike calls.
6	Covered Put	Moderately Bearish	Earn premium while shorting stock	Low	Limited	Limited	OTM – Sell OTM put below current price.	Sell put against shorted stock to collect premium.
7	Bear Call Spread	Moderately Bearish	Profit if price stays below strike	Moderate	Limited	Limited	ATM & OTM – Sell ATM call, buy OTM call.	Sell call at lower strike, buy call at higher strike to limit risk.
8	Bear Put Spread	Moderately Bearish	Profit from limited price drop	Moderate	Limited	Limited	ATM & OTM – Buy ATM put, sell OTM put.	Buy put at higher strike, sell put at lower strike to reduce cost.
9	Bear Put Ladder Spread	Moderately Bearish	Profit from steady price drop	High	Limited	Unlimited	ATM & OTM – Buy ATM put, sell two lower OTM puts.	Buy ATM put, sell two lower OTM puts for extra premium.
10	Bear Ratio Spread	Moderately Bearish	Profit from gradual price drop	Moderate	Limited	Unlimited	ATM & OTM – Buy ATM put, sell multiple OTM puts.	Buy one put, sell multiple lower strike puts.
11	Iron Condor	Neutral	Profit from stable price range	Low	Limited	Limited	OTM & ATM – Sell closer OTM put & call, buy farther OTM put & call.	Sell closer OTM put & call, buy farther OTM put & call for protection.
12	Long Call Butterfly	Neutral	Profit if price stays near strike	Low	Limited	Limited	OTM, ATM, ITM – Buy lower & higher calls, sell 2 ATM calls.	Buy lower & higher calls, sell 2 middle calls.
13	Short Call Butterfly	High Volatility	Profit from big price move	Moderate	Limited	Limited	OTM, ATM, ITM – Sell lower & higher calls, buy 2 ATM calls.	Sell lower & higher calls, buy 2 middle calls.
14	Collar	Neutral to Slightly Bullish	Protect downside, cap upside	Low	Limited	Limited	OTM & ATM – Buy OTM put, sell OTM call.	Buy put for protection, sell call for premium.
15	Long Call Condor	Neutral	Profit from limited price movement	Low	Limited	Limited	OTM, ATM – Buy lower & higher calls, sell 2 middle calls.	Buy lower & higher calls, sell 2 middle calls.
16	Short Call Condor	High Volatility	Profit from large movement	Moderate	Limited	Limited	OTM, ATM – Sell lower & higher calls, buy 2 middle calls.	Sell lower & higher calls, buy 2 middle calls.
17	Long Straddle	High Volatility	Profit from large movement	High	Unlimited	Limited	ATM – Buy ATM call & put.	Buy ATM call & put to benefit from volatility.
18	Short Straddle	Low Volatility	Profit from minimal movement	High	Limited	Unlimited	ATM – Sell ATM call & put.	Sell ATM call & put to collect premium in stable markets.
19	Long Strangle	High Volatility	Profit from big price move	High	Unlimited	Limited	OTM – Buy OTM call & put.	Buy OTM call & put to benefit from large movements.
20	Short Strangle	Low Volatility	Profit from low movement	High	Limited	Unlimited	OTM – Sell OTM call & put.	Sell OTM call & put to collect premium in low volatility.
21	Long Call Calendar Spread	Neutral to Slightly Bullish	Profit from slow price rise	Low	Limited	Limited	ATM – Buy long-term call, sell short-term call.	Buy long-term call, sell short-term call.
22	Long Put Calendar Spread	Neutral to Slightly Bearish	Profit from slow price drop	Low	Limited	Limited	ATM – Buy long-term put, sell short-term put.	Buy long-term put, sell short-term put.
23	Protective Call	Bearish	Protect short position	Moderate	Unlimited	Limited	OTM – Buy OTM call for protection.	Buy OTM call to hedge against rising prices.
24	Protective Put	Bullish	Protect long position	Moderate	Unlimited	Limited	OTM – Buy OTM put for protection.	Buy OTM put to hedge against falling prices.
25	Rolling Straddle Hedge	Hedging	Hedge with deep ITM Calls & Puts, rolling across expiries & averaging positions	High	Unlimited	Limited to the total premium paid, but managed through adjustments	Deep ITM – Buy deep ITM Calls & Puts at different strikes and roll if needed	Buy multiple deep ITM Calls & Puts, add more if price moves against position, roll positions to later expiries to hedge risk and manage theta decay