Option Made Easy
Welcome to our platform, where we strive to make option trading easy and accessible. We understand that navigating the world of options can be overwhelming, so our approach is centered around simplifying the process. Through our unique teaching methods, we break down complex concepts into easily understandable terms, allowing you to grasp the fundamentals with ease. Whether you're a beginner or an experienced trader, our aim is to provide you with the knowledge and tools necessary to confidently navigate the options market. Join us on this journey as we demystify option trading and empower you to make informed investment decisions.
Some of the basic option combinations are written below
| Option Combination Strategy | Description |
|---|---|
| Covered Call | Owning the underlying asset and selling a call option against it |
| Protective Put | Buying a put option to protect against downside risk in a stock position |
| Long Straddle | Simultaneously buying a call option and a put option with the same strike price and expiration date |
| Short Straddle | Simultaneously selling a call option and a put option with the same strike price and expiration date |
| Long Strangle | Simultaneously buying an out-of-the-money call option and an out-of-the-money put option with different strike prices but the same expiration date |
| Short Strangle | Simultaneously selling an out-of-the-money call option and an out-of-the-money put option with different strike prices but the same expiration date |
| Iron Condor | Combining a bear call spread and a bull put spread to generate premium income while limiting potential losses |
| Iron Butterfly | Combining a bear call spread and a bull put spread with the same strike prices to achieve a limited-risk, limited-reward position |
| Calendar Spread | Simultaneously buying and selling options with different expiration dates but the same strike price |
| Butterfly Spread | Combining a bull spread and a bear spread to achieve a limited-risk, limited-reward position |
| Ratio Spread | Buying a greater number of options than selling to take advantage of potential price movements |
| Collar | Combining a covered call and a protective put to limit potential losses and protect gains |
| Synthetic Long Stock | Combining a long call option and a short put option with the same strike price to mimic the characteristics of owning the underlying stock |
| Synthetic Short Stock | Combining a short call option and a long put option with the same strike price to mimic the characteristics of a short stock position |
| Diagonal Spread | Simultaneously buying and selling options with different strike prices and expiration dates |
More strategies will be published soon !
Keep learning, Be profitable

Comments
Post a Comment