Academic-backed options trading strategies with detailed implementation guides. From covered calls to complex spreads.
Generate income by selling call options against stock you own. Trades upside potential for immediate premium.
Generate income by selling put options against a short stock position. The bearish counterpart to covered calls.
Hedge downside risk by buying puts against stock positions. Classic portfolio insurance with unlimited upside.
Hedge short stock positions by buying calls. The bearish counterpart to protective puts with capped upside risk.
A vertical spread that profits from moderately bullish moves. Buy a call, sell a higher strike call for defined risk.
A credit spread that profits from stable or rising prices. Sell a put, buy a lower strike put for income with defined risk.
A credit spread that profits from stable or falling prices. Sell a call, buy a higher strike call for income with defined risk.
A debit spread that profits from falling prices. Buy a put, sell a lower strike put for leveraged bearish exposure with defined risk.
Replicate stock exposure using options. Buy call + sell put for long exposure, or reverse for short. Capital-efficient directional play.
Combine OTM call and put at different strikes for directional exposure. Features a neutral zone between strikes with zero P&L.
Extend a bull call spread with an extra short call. Reduces cost but introduces unlimited upside risk if the stock rallies too far.
Extend a bull put spread with an extra long put. Credit strategy that profits from stock crash or staying above the upper breakeven.
Extend a bear call spread with an extra long call. Credit strategy that profits from stock staying low or rallying sharply.
Extend a bear put spread with an extra short put. Debit strategy for moderate bearish views with reduced cost but downside risk.
Profit from time decay by selling short-dated calls against longer-dated calls at the same strike. A theta-positive income strategy.
Profit from time decay by selling short-dated puts against longer-dated puts at the same strike. Neutral to bearish theta strategy.
Buy deep ITM call (long expiration), sell OTM call (short expiration). Bullish strategy combining stock-like exposure with income generation.
Buy deep ITM put (long expiration), sell OTM put (short expiration). Bearish strategy combining short-stock-like exposure with income generation.
Buy ATM call and ATM put at same strike. Profits from large moves in either direction. Classic volatility play for earnings and events.
Buy OTM call and OTM put at different strikes. Cheaper than straddle but requires larger move. Cost-effective volatility play.
Sell ATM call and ATM put at same strike. Profits from low volatility and time decay. Unlimited risk if stock moves significantly.
Sell OTM call and OTM put at different strikes. Wider profit zone than straddle but lower premium. Unlimited risk beyond breakevens.
Buy 1 OTM call, sell 2 ATM calls, buy 1 ITM call at equidistant strikes. Low-cost neutral strategy with defined risk.