Options trading strategies: Bear Call, Bull Put, Covered Call, Long Call, Condor, and more. Learn how they work.

December 27, 2025 - For this strategy to be profitable, Starbucks’ stock price must move significantly below the break-even point of $42.15 or above $57.85 at expiration, covering the total cost of $5.85 per share for both options. How it works: In a long butterfly spread using call options, you combine both a bull and bear spread strategies.

Learn about 36 popular options strategies like iron condors, iron butterflies, credit spreads, and more.

September 17, 2025 - Strap Strangle: A simple, volatile trading strategy suitable for beginners. Strip Straddle: A simple, volatile trading strategy suitable for beginners. Strip Strangle: A simple, volatile trading strategy suitable for beginners. Synthetic Covered Call, Short Straddle, and Straddle: See Synthetic ...

Your maximum loss is capped at the price you pay for the option. ... A simple income strategy for neutral to slightly-bullish situations when you are willing to sell your stock at strike price A. If you own 100 shares of the underlying stock, you can use a covered call to generate income or sell your position at a favorable price.

Some strategies are known under multiple names, which are also listed. Or see option strategies by exposure: bullish, bearish, long volatility, non-directional. Or by number of legs: single leg, two legs, three legs, four legs.

Investors that are looking to make the best returns in today’s market they have to learn how to trade options. Below are the 28 most popular option strategies, including how they are executed, trading strategies, how investors profit or lose, breakeven points, and when is the right time to use…

Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy at strike A... ... A long put spread gives you the right to sell stock at strike price B and obligates you to buy stock at strike price A if assigned. This strategy is an alternative to buying a long put... ... A short call spread obligates you to sell the stock at strike price A if the option is assigned but gives you the right to buy stock at strike price B...

An iron condor is one of the options strategies that allow traders to manage their capital more efficiently, as it’s a defined risk strategy. Essentially, an iron condor is comprised of a short call vertical spread, and a short put vertical spread, both of which are OTM.

May 18, 2026 - Options strategies can be broadly categorized into three types: directional strategies, volatility strategies, and income strategies. Directional strategies are based on the expectation that the underlying asset's price will move in a specific ...

January 23, 2025 - Investors generally consider rolling the options a further time to the expiration date if they find the protective collar necessary and the stock remains within the desired range. Neutral or non-directional strategies are primarily used when an investor expects the price of an asset to remain relatively stable or is uncertain about its future direction.

April 1, 2026 - Some popular option strategies in a bullish market include the long call and bull call spread, which allow traders to profit from upward price movement. For bearish conditions, traders often use the long put or bear put spread to benefit from ...

2 weeks ago - Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price.

March 4, 2026 - If the price of a stock stays below the strike price when the option expires, the call writer keeps the shares and the premium, and can then write another covered call if desired. If the shares rise above the strike price when the option expires, the call writer must sell the shares at that price. ... Being short a put is similar to being long a call in the sense that both strategies are bullish.

Download our free guide with 31 options trading strategies for all trading levels, from beginner to advanced, and take your options trading to the next level.

Learn about the most commonly traded option strategies, like call and put spreads, straddles, strangles, butterflies and condors.

May 9, 2022 - Calls and puts can be combined in innumerable ways to create custom-tailored options trading strategies. These strategies can be designed to profit in bearish, bullish, or even neutral markets. In this article, projectfinace has compiled a list of 29 core options trading strategies for beginners.

Time decay and implied volatility move the option price too, and a slow drift lower can still leave a put buyer underwater. Traders buy puts to profit from downside price movements or to protect stock they already own. You can be a buyer or a seller of either one.

But, there are roughly three types of strategies for trading in options. Firstly, you have the bullish strategies like bull call spread and bull put spread. Secondly, you have the bearish types of strategy such as bear call spread and bear put ...

For the short position, the maximum profit will be earned if the price of the underlying is between the 2 strike prices. As with the short straddle, potential losses have no definite limit, but they will be less than for an equivalent short straddle, depending on the strike prices chosen. See Straddles and Strangles: Non-Directional Option Strategies for more in-depth coverage.