Options Strategies

Bull Call Spread

What is a Bull Call Spread?

As the name suggest, a bull call spread is an option strategy designed to work when the prevailing trend is higher.  The bull call spread does a great job of allowing you to take part in a bullish move by reducing your risk and breakeven points while at the same time, p

Long Straddle

What is a Straddle?

A straddle option strategy is a basic volatility strategy that banks on the idea that the underlying security is going to move significantly in one direction, even if you do not know which way. The straddle is a direction neutral, medium risk, unlimited reward strategy.

Strangle

What is a Long Strangle?

A strangle option strategy is a basic volatility strategy which comes with low risk but will require dramatic price moves to pay out profitably.

Synthetic Calls

What are Synthetic Calls?

When a trader goes long a stock and long the puts as well, the configuration is known as a synthetic call.  The purpose of this strategy is to protect against a rapid decline in the stock price; for example, it is especially useful in a very volatile market such as the one we saw in 2000 to 2002.  When choosing the strike price of the

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