Options Strategies
Discover the most important options strategies for different market conditions. From beginner to advanced.
Complete Strategy Guides
These strategies have comprehensive guides with step-by-step tutorials, examples, and FAQ.
Covered Call
Generate regular income from your stocks by selling calls. The most popular income strategy for beginners.
Risk
Low
Market
Neutral/Bullish
Level
Beginner
Iron Condor
Profit from sideways markets with defined risk. Combines Bull Put Spread and Bear Call Spread.
Risk
Medium
Market
Sideways
Level
Advanced
Income Strategies
Regular premium income
Covered Call
You own the underlying asset and sell a call option. Strategy to generate additional income with neutral to slightly bullish market expectations.
Full GuideCash-Secured Put
Sell puts on stocks you would like to own. Get paid while waiting for a good entry price.
Full GuideIron Condor
Combination of bull put spread and bear call spread. Profitable in low volatility and sideways trending markets.
Full GuideCredit Spread
Sell one option and buy a cheaper one for protection. Limited profit, limited risk.
Full GuideDirectional Strategies
For bullish or bearish market expectations
Bull Call Spread
Buy a call option with lower strike and sell a call option with higher strike. Limited profit potential with rising prices.
Full GuideBear Put Spread
Buy a put option with higher strike and sell a put option with lower strike. Limited profit potential with falling prices.
Full GuideLong Call
Buy a call when you expect the price to rise. Unlimited profit potential, limited risk.
Full GuideLong Put
Buy a put when you expect the price to fall. Profit from falling prices.
Full GuideHedging Strategies
Protect your portfolios
Protective Put
LowYou own the underlying asset and buy a put option as insurance against falling prices.
Collar
LowCombines Covered Call with Protective Put. Limits both profit and loss.
Married Put
LowBuy stock and put simultaneously. Complete protection against losses.
Volatility Strategies
Profit from market fluctuations
Long Straddle
High vol expectedSimultaneous purchase of a call and put option with the same strike and expiration. Profits from strong price movements in either direction.
Risk: Medium-High
Long Strangle
High vol expectedLike straddle but with OTM options. Cheaper but needs bigger move.
Risk: Medium-High
Iron Butterfly
Low vol expectedLike Iron Condor but with same strike in the middle. Higher risk, higher premium.
Risk: Medium
Quick Guide: Which Strategy?
- Covered Call
- Bull Call Spread
- Long Call
- Cash-Secured Put
- Bear Put Spread
- Long Put
- Protective Put
- Iron Condor
- Iron Butterfly
- Covered Call
- Long Straddle
- Long Strangle
- Protective Collar