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    Option Strstegies (Bullish Strategies) 1. Long Call

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    Obaid R.
    1. The document outlines various bullish, bearish, and volatile options strategies. Bullish strategies include long calls and short puts. Bearish strategies include short calls, bear spreads using calls, long puts, and bear spreads using puts. Volatile strategies include long straddles and short straddles. 2. Each strategy is briefly defined, outlining whether it profits from rising or falling markets. Key details like limited or unlimited risk and potential profit caps are also mentioned. 3. The strategies provide different ways for investors to structure options trades based on their market outlook, with varying levels of risk and profit potential.

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    Option Strstegies (Bullish Strategies) 1. Long Call

    Uploaded by

    Obaid R.
    19 views4 pages
    1. The document outlines various bullish, bearish, and volatile options strategies. Bullish strategies include long calls and short puts. Bearish strategies include short calls, bear spreads using calls, long puts, and bear spreads using puts. Volatile strategies include long straddles and short straddles. 2. Each strategy is briefly defined, outlining whether it profits from rising or falling markets. Key details like limited or unlimited risk and potential profit caps are also mentioned. 3. The strategies provide different ways for investors to structure options trades based on their market outlook, with varying levels of risk and profit potential.

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    finance

    Original Title

    OPTION STRSTEGIES

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    1. The document outlines various bullish, bearish, and volatile options strategies. Bullish strategies include long calls and short puts. Bearish strategies include short calls, bear spreads using calls, long puts, and bear spreads using puts. Volatile strategies include long straddles and short straddles. 2. Each strategy is briefly defined, outlining whether it profits from rising or falling markets. Key details like limited or unlimited risk and potential profit caps are also mentioned. 3. The strategies provide different ways for investors to structure options trades based on their market outlook, with varying levels of risk and profit potential.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    19 views4 pages

    Option Strstegies (Bullish Strategies) 1. Long Call

    Uploaded by

    Obaid R.
    1. The document outlines various bullish, bearish, and volatile options strategies. Bullish strategies include long calls and short puts. Bearish strategies include short calls, bear spreads using calls, long puts, and bear spreads using puts. Volatile strategies include long straddles and short straddles. 2. Each strategy is briefly defined, outlining whether it profits from rising or falling markets. Key details like limited or unlimited risk and potential profit caps are also mentioned. 3. The strategies provide different ways for investors to structure options trades based on their market outlook, with varying levels of risk and profit potential.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
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    OPTION STRSTEGIES (BULLISH STRATEGIES)

    1. LONG CALL

    A long call is the most common options strategy in which investors buy a call option,
    expecting the market price of the underlying asset to rise considerably above the strike
    price before maturity.

    2. Short Cut:

    Shorting a put option means you sell the right buy the stock. In other words you have the
    obligation to buy the stock at the strike price if the option is exercised by the put option
    buyer.

    BEARISH STRATEGIES:
    1. Short Call:
    This means selling a call option, used in bearish market expect a falling or stable
    market profit is limited to call premium received, with unlimited risk.

    2. Bear spread using call:


    A call bear spread involves selling a call with a lower strike price and subsequently
    buying a call with a higher strike price. Both call options need to have the same
    expiration date.

    3. Long Put:
    A long put is the purchase of a put option. The Max Loss is limited to the net premium
    paid for the option. The Max Gain is uncapped as the market falls but limited to the strike
    price minus the stock price as the stock cannot trade lower than zero.
    4. Bear Spread Using Put:
    A Put Bear Spread is buying a put option while selling a put option with a lower strike
    price. Both options are in the same expiration month. The Max Loss is limited to the net
    amount paid for the spread. The Max Gain is limited to the difference between the two
    strike prices minus the net premium paid for the position.

    VOLATILE STRATEGIES:
    1. Long Straddle:
    A long straddle is where you buy both a call and a put at the same strike price in the same
    expiration month. The Max Loss is limited to the total premium paid for the call and put
    options. The Max Gain is uncapped as the market moves in either direction.
    2. Short Straddle:
    A short straddle is where you sell both a calls and puts at the same strike price in the same
    expiration month. The Max Loss is uncapped as the market moves in either direction. The
    Max Gain is limited to the total premium received when selling the spread.

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