Options Strategies

Academic-backed options trading strategies with detailed implementation guides. From covered calls to complex spreads.

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Income

Covered Call

Generate income by selling call options against stock you own. Trades upside potential for immediate premium.

BeginnerSubstantial Risk
Max Profit: Strike - Stock Price + Premium
Income

Covered Put

Generate income by selling put options against a short stock position. The bearish counterpart to covered calls.

IntermediateUnlimited Risk
Max Profit: Stock Price - Strike + Premium
Hedging

Protective Put

Hedge downside risk by buying puts against stock positions. Classic portfolio insurance with unlimited upside.

IntermediateLimited Risk
Max Profit: Unlimited
Hedging

Protective Call

Hedge short stock positions by buying calls. The bearish counterpart to protective puts with capped upside risk.

IntermediateLimited Risk
Max Profit: Stock Price - Premium
Directional

Bull Call Spread

A vertical spread that profits from moderately bullish moves. Buy a call, sell a higher strike call for defined risk.

IntermediateLimited Risk
Max Profit: Spread Width - Net Debit
Income

Bull Put Spread

A credit spread that profits from stable or rising prices. Sell a put, buy a lower strike put for income with defined risk.

IntermediateLimited Risk
Max Profit: Net Credit Received
Income

Bear Call Spread

A credit spread that profits from stable or falling prices. Sell a call, buy a higher strike call for income with defined risk.

IntermediateLimited Risk
Max Profit: Net Credit Received
Directional

Bear Put Spread

A debit spread that profits from falling prices. Buy a put, sell a lower strike put for leveraged bearish exposure with defined risk.

IntermediateLimited Risk
Max Profit: Spread Width - Net Debit
Directional

Synthetic Forward

Replicate stock exposure using options. Buy call + sell put for long exposure, or reverse for short. Capital-efficient directional play.

IntermediateUnlimited Risk
Max Profit: Unlimited (long) / K-H (short)
Directional

Risk Reversal (Combo)

Combine OTM call and put at different strikes for directional exposure. Features a neutral zone between strikes with zero P&L.

IntermediateUnlimited Risk
Max Profit: Unlimited (long) / K₁-H (short)
Directional

Bull Call Ladder

Extend a bull call spread with an extra short call. Reduces cost but introduces unlimited upside risk if the stock rallies too far.

IntermediateUnlimited Risk
Max Profit: K₂ - K₁ - H
Directional

Bull Put Ladder

Extend a bull put spread with an extra long put. Credit strategy that profits from stock crash or staying above the upper breakeven.

IntermediateLimited Risk
Max Profit: K₃ + K₂ - K₁ - H
Directional

Bear Call Ladder

Extend a bear call spread with an extra long call. Credit strategy that profits from stock staying low or rallying sharply.

IntermediateLimited Risk
Max Profit: Unlimited (above upper breakeven)