Best Option Trading Strategies Every Trader Must Know
Bullish Options Strategies
Bull Put Spread: Two puts with different strike prices, earning if the price rises.
Bull Call Spread: Combine two calls, limiting profits but reducing risk.
For a rising market: Maximize gains while minimizing losses.
Bearish Options Strategies
Bear Put Spread: Buy an in-the-money put and sell an out-of-the-money put, with limited profit potential.
Bear Call Spread: Sell an in-the-money call and buy an out-of-the-money call, earning if the price falls.
For a falling market: Profit from a decline in the underlying asset's price.
Neutral Options Strategies
Strangle (Long): Similar to straddle, but uses out-of-the-money options, limiting potential profit.
Straddle (Long): Buy a call and put it with the same strike price, profiting from large price movements in either direction.
For an uncertain market: Profit from limited price movement.
Advanced Options Strategies
Iron Condor (Long/Short): Four-legged strategy, profiting from low market volatility.
Butterfly Spreads (Long/Short): Combine bull and bear spreads, setting defined profit and risk.
Complex strategies for experienced traders.
Disclaimer
Consult a financial advisor before using these strategies.
Options trading is complex and involves significant risk.
Open Demat G-L92HWH8MZR