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.


Consult a financial advisor before using these strategies.

Options trading is complex and involves significant risk.

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