A Long Synthetic Future is an options strategy that replicates owning a futures contract using call and put options. By simultaneously buying a call and selling a put at the same strike (and same expiration), you can mimic the payoff of being “long” the underlying. This approach often requires lower margin than buying the actual …
A Short Iron Condor is an options strategy that profits from a range-bound market while limiting risk on both the upside and downside. It involves selling two options (a call and a put) closer to the current market price, and buying two options further out-of-the-money to cap the maximum loss. This guide will explain how …
What is a Long Iron Condor? A Long Iron Condor is a debit options strategy that aims to profit from large price moves in the underlying—either up or down—while limiting risk on both sides. It consists of four legs: two long options (one call and one put) and two short options (one call and one …
What is a Short Strangle? A Short Strangle is an options strategy where you sell an out-of-the-money (OTM) call and sell an out-of-the-money (OTM) put, both with the same expiration date but different strike prices. Similar to a Short Straddle, the goal is to profit from low volatility and time decay—you expect the underlying price …
What is a Long Strangle? A Long Strangle is an options strategy where you buy an out-of-the-money (OTM) call and buy an out-of-the-money (OTM) put with the same expiration date but different strike prices. This strategy profits from significant price movement in either direction, without requiring that the underlying be at-the-money at trade initiation. Understanding …
What is a Short Straddle? A Short Straddle is an options strategy where you sell both a call option and a put option at the same strike price (often at-the-money) and the same expiration date. Unlike a Long Straddle, which aims to profit from large directional moves, a Short Straddle profits from low volatility and …
What is a Long Straddle? A Long Straddle is an options strategy where you buy both a call option and a put option at the same strike price (often at-the-money) and the same expiration date. This strategy benefits from large price movements in either direction; you’re not predicting which way the market will move, just …
What is a Bull Put Spread? A Bull Put Spread is a neutral-to-bullish options strategy where you sell a put option at a higher strike and buy another put option at a lower strike (both with the same expiration). This setup creates a net credit and helps limit your maximum loss if the underlying price …
What is a Bear Call Spread? A Bear Call Spread is a neutral-to-bearish options strategy where you sell a call option at a lower strike and simultaneously buy another call at a higher strike (both with the same expiration). This creates a net credit while capping your potential profit. Your maximum loss is limited by …
What is a Bear Put Spread? A Bear Put Spread is a moderately bearish options strategy where you buy a put option at a higher strike and sell another put at a lower strike (both with the same expiration). This setup lowers the cost compared to buying a single put outright, while capping potential profits. …
How to Set Up a Bear Put Spread Strategy in Algomojo Read More »
