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Option Strategy Table Summary

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
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