Part 1 Ride The Big Moves

Types of Option Strategies

Options allow traders to combine multiple positions to create strategies based on volatility, direction, or time decay.

Here are some popular ones:

1. Buying Calls and Puts

The simplest form. Good for beginners and directional traders.

2. Selling Options

You earn premium.
Risk is higher, so proper strategy and stop-loss are needed.

3. Spreads

Involves buying one option and selling another.
Examples:

Bull call spread

Bear put spread

Credit spreads

These reduce risk and premium cost.

4. Straddle

Buying both call and put at the same strike.
Used when expecting big movement but unsure about direction.

5. Strangle

Similar to straddle but with different strikes.

6. Iron Condor

A non-directional strategy used to profit when the market stays in a narrow range.

Options allow both beginners and advanced traders to adjust risk, reward, and probability.