Options strategies

Option strategies group combinatons of calls and puts (the names used for option types) together. Buying and selling options allows you to limit your risk and maximize your return, while controlling more positions for less money than trading stocks. Basically traders can profit in any type of market — upward, downward, or neutral — when using options.

There are 21 option strategies to understand plus a custom strategy. Each strategy is described along with an example of how to calculate your profit and loss. Click on a strategy name below.

The strategies are grouped by your view of the market. If you think the price will go up, you have a bullish view. If you think the price will go down, you have a bearish view.

Bullish strategies Neutral strategies Bearish strategies