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. …
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What is Bull Call Spread? A Bull Call Spread is a popular options trading strategy designed for traders with a moderately bullish outlook on the underlying asset. This strategy aims to profit from a rising market while limiting risk and upfront cost. Understanding the Bull Call Spread How It Works Buy a Call Option at …
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