Options Strategies

Vertical Spread Overview

A vertical spread is an options strategy which allows option traders to bet on the direction of the market with a limited risk and limited return profile.  Traders utilizing a vertical spread are typically not 100% sold on the direction or strength in the trend.

Bear Put Spread Overview

What is a Married Put?

What is a short strangle?

The short strangle is similar to the short straddle and does the opposite of the long strangle.  The short strangle is a medium to high risk, limited reward, low volatility

What is a Short Straddle

What is a Naked Put?

Bull Calendar Spread - Overview

A Bull Calendar Spread, is an options strategy that involves purchasing options with different expirations.  This strategy is also known as a time spread or horizontal spread and is a directi

Long Guts - Overview

The long guts option strategy is a volatility trade that is created when the trader believes that there will be a sharp move up, or down in the underlying

What is a Call Ratio Backspread?

A call ratio backspread is a good strategy if you have a strong conviction that the security you are buying options on will have a strong upside move.  Basically, the call ratio backspread is inverse to the call ratio spread in that

What is a Call Ratio spread?

A Call Ratio Spread is an options strategy for traders who believe that the stock go sideways to down until expiration of the option.  The strategy consists of buying 1 in the money call and selling

What is a Covered Call?

What is the Condor Option Spread?

The condor spread, is very similar to the butterfly option strategy in that it is a low risk, low reward options strategy that profits when the underlying asset has very small percentage changes from entr

What is a Collar Option Strategy?

The collar option strategy is designed to provide an extremely low risk strategy to trading stocks. While they may not produce the largest returns, you will not suffer large draw downs either. In fact, if you set the collar up correctly, you may even be able to create a risk-free trade scenario.

What is the Butterfly Option Spread?

The butterfly spread is put together to create a low risk, low reward options strategy and is designed to take advantage of a market or stock that is range bound.  The butterfly can be created using call

What is a Bull Put Spread?

As the name suggests, the bull put spread is a bullish options strategy and consists of one long and one short put.