Options Trading Strategies
Master 11+ options strategies for any market condition. From simple long calls to complex spreads, find the right strategy for your outlook.
Bullish Strategies
Profit when the underlying rises
Long Call
beginnerBuy a call option to profit from bullish price movement with limited risk.
Bull Call Spread
intermediateA bullish strategy that reduces cost by selling an OTM call against a long call.
Cash-Secured Put
beginnerSell puts while holding cash to buy shares, generating income or acquiring stock at a discount.
Bearish Strategies
Profit when the underlying falls
Neutral Strategies
Profit when price stays in a range
Covered Call
beginnerSell a call against owned shares to generate income and reduce cost basis.
Iron Condor
intermediateA four-leg neutral strategy that profits when the stock stays within a range.
Short Strangle
advancedSell both an OTM put and OTM call to collect premium in range-bound markets.
Wheel Strategy
intermediateA systematic approach cycling between cash-secured puts and covered calls for income.
Volatility Strategies
Profit from large moves in either direction
Strategy Comparison
| Strategy | Outlook | Max Profit | Max Loss | Complexity |
|---|---|---|---|---|
| Long Call | bullish | Unlimited (stock can rise indefinitely) | Premium paid | beginner |
| Bull Call Spread | bullish | Spread width - net debit paid | Net debit paid | intermediate |
| Covered Call | neutral | Premium received + (strike - stock purchase price) | Stock can go to zero (minus premium received) | beginner |
| Cash-Secured Put | bullish | Premium received | Strike price × 100 - premium (if stock goes to zero) | beginner |
| Long Put | bearish | Strike price - premium (if stock goes to zero) | Premium paid | beginner |
| Bear Put Spread | bearish | Spread width - net debit | Net debit paid | intermediate |
| Iron Condor | neutral | Net credit received | Width of wider spread - net credit | intermediate |
| Short Strangle | neutral | Premium received from both options | Unlimited (stock can go to infinity or zero) | advanced |
| Long Straddle | volatile | Unlimited on upside, substantial on downside (to zero) | Total premium paid for both options | intermediate |
| Long Strangle | volatile | Unlimited on upside, substantial on downside | Total premium paid | intermediate |
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