12 Options trading strategies to know

The bear put spread

It is a strategy that involves buying one option and selling another with lower strike prices but with the same expiration date. It can be considered moderately Bearish because it does not provide upside potential if stock prices go up by more than expected while still offering some protection against downside risks if things turn out differently than planned.

The short straddle

One of the more profitable options trading strategies, short straddles, is also very easy to execute. They involve buying an equal number of Calls and Puts with the same strike price and expiry date- essentially betting on whether there will be any movement in stock prices before then. It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The maximum upside profit comes through at expiration when the underlying security pays out if it finishes over strike A by more than strike B by more than debit taken on opening trade/spread.

The bull call spread

A moderately bullish options trading strategy that involves buying a call option and selling another with similar strike prices but earlier expiration date is called "bull call spreads."

The short iron butterfly

A short iron butterfly is a strategy that involves selling the same amount of options that has similar expiration dates but different strike prices. You can generate more profit from falling markets by generating leverage when your portfolio starts losing value (making it easier for you if shares start going up).

The long straddle

The long straddle is a neutral-to-bearish options trading strategy that involves buying an equal number of calls and put options with similar strike prices and expiration dates. It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The long iron butterfly

The long iron butterfly is a moderately bullish options trading strategy that involves buying the same amount of call and put options with the same expiration date but different strike prices.

The calendar spread

It is a neutral options trading strategy that involves buying a longer-term option and selling a shorter-term option with the same strike price and expiration date.

It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The short straddle

The short straddle is a neutral-to-bearish options trading strategy that involves selling an equal number of call and put options with corresponding strike price and expiration date. It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The short strangle

The short strangle is a moderately bearish options trading strategy involving selling a call with similar expiration dates but different strike prices. It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The long condor

The long condor is a moderately bullish options trading strategy involving buying a call with corresponding expiration dates but different strike prices. It recoups in full any upfront option premium income when open, but it doesn't provide much downside protection or profit potential compared to other strategies.

The long butterfly

The long butterfly is a moderately bullish options trading strategy involving buying a call and put with matching expiration dates and different strike prices but with the same premium. It profits if the underlying security finishes within a specific range at any price, making it a versatile choice that doesn't require much directional speculation.

The long straddle

The long straddle is a moderately bullish options trading strategy involving buying a call and put with similar expiration dates and strike price. It profits if the underlying security finishes within a specific range at any price, making it a versatile choice that doesn't require much directional speculation.

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