Categories of Options Strategies
Directional Strategies – Profit from a clear bullish or bearish bias.
Neutral Strategies – Profit from time decay or volatility drops.
Volatility-Based Strategies – Profit from big moves or volatility increases.
Hedging Strategies – Reduce risk on existing positions.
Directional Strategies
Bullish Strategies
These make money when the underlying price rises.
Long Call
Setup: Buy 1 Call
When to Use: Expect sharp upside.
Risk: Limited to premium paid.
Reward: Unlimited.
Example: Nifty at 22,000, buy 22,200 Call for ₹150. If Nifty rises to 22,500, option might be worth ₹300+, doubling your investment.
Bull Call Spread
Setup: Buy 1 ITM/ATM Call + Sell 1 higher strike Call.
Purpose: Lower cost vs. long call.
Risk: Limited to net premium paid.
Reward: Limited to difference between strikes minus premium.
Example: Buy 22,000 Call for ₹200, Sell 22,500 Call for ₹80 → Net cost ₹120. Max profit ₹380 (if Nifty at or above 22,500).
Bull Put Spread (Credit Spread)
Setup: Sell 1 higher strike Put + Buy 1 lower strike Put.
Purpose: Earn premium in bullish to neutral markets.
Risk: Limited to spread width minus premium.
Example: Sell 22,000 Put ₹200, Buy 21,800 Put ₹100 → Credit ₹100.
Directional Strategies – Profit from a clear bullish or bearish bias.
Neutral Strategies – Profit from time decay or volatility drops.
Volatility-Based Strategies – Profit from big moves or volatility increases.
Hedging Strategies – Reduce risk on existing positions.
Directional Strategies
Bullish Strategies
These make money when the underlying price rises.
Long Call
Setup: Buy 1 Call
When to Use: Expect sharp upside.
Risk: Limited to premium paid.
Reward: Unlimited.
Example: Nifty at 22,000, buy 22,200 Call for ₹150. If Nifty rises to 22,500, option might be worth ₹300+, doubling your investment.
Bull Call Spread
Setup: Buy 1 ITM/ATM Call + Sell 1 higher strike Call.
Purpose: Lower cost vs. long call.
Risk: Limited to net premium paid.
Reward: Limited to difference between strikes minus premium.
Example: Buy 22,000 Call for ₹200, Sell 22,500 Call for ₹80 → Net cost ₹120. Max profit ₹380 (if Nifty at or above 22,500).
Bull Put Spread (Credit Spread)
Setup: Sell 1 higher strike Put + Buy 1 lower strike Put.
Purpose: Earn premium in bullish to neutral markets.
Risk: Limited to spread width minus premium.
Example: Sell 22,000 Put ₹200, Buy 21,800 Put ₹100 → Credit ₹100.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.