Covered Call Option Strategy

The covered call  strategy involves the trader writing a call option against stock they buy right then or already hold. Besides earning a premium for the sale, with covered...

Short Call Option Strategy

Short call, also known as uncovered or naked call, is selling a call without taking a position in the underlying stock. If you are new to options trading, then short calling...

Risk Reversal Option Strategy

The risk reversal options strategy consists of buying an out of the money call option and selling an out of the money put option in the same expiration month. This is a very...

Synthetic Long Stock Option Strategy

The synthetic long stock position consists of buying a call and selling a put in the same month and at the same strike price. The investor who enters this strategy is going to...

Protective Put Option Strategy

A protective put, also known as a synthetic long call, is an options strategy that consists of buying or owning the stock, and then buying one put at strike price A. The...

Collar Option Strategy

A collar is an options strategy that consists of buying or owning the stock, and then buying one put at strike price A, and selling a call at strike price B. An investor who...

Iron Butterfly Option Strategy

An iron butterfly spread is an advanced options strategy that consists of three legs and four total options. The trade involves joining a bull put spread and a bear call...

Butterfly Spread with Puts Option Strategy

A long butterfly spread with puts is an advanced options strategy that consists of three legs and four total options. The trade involves buying one put at strike price A,...