An option contract gives you the right (but not the obligation) to buy or sell a stock at a specific price before a certain date. Think of it like a reservation - you pay a fee to lock in a price, but you don't have to follow through. Options expire on a set date, after which they become worthless if not used.
Greeks are numbers that help you understand how your option's price will change. Click to learn more about each Greek and see the complete reference table.
buy call • naked call • call option purchase
Buy a call option - profit from upward stock movement with limited risk.
long call spread • call debit spread • vertical call spread
Buy lower strike call, sell higher strike call - cheaper bullish play.
short put spread • put credit spread • vertical put spread
Sell higher strike put, sell lower strike put - collect premium.
sell put • naked put • put writing
Sell a put option - collect premium betting stock won't fall below strike.
married put • portfolio insurance • long put hedge
Own stock + buy put - insurance against downside.
call backspread • reverse call ratio spread • ratio call spread
Sell 1 lower strike call, buy 2+ higher strike calls - profit from large upward moves.
front ratio spread • put ratio • 1x2 put spread
Buy 1 higher strike put, sell 2+ lower strike puts - neutral to bullish.
diagonal spread • time spread with strikes • poor man's covered call
Buy longer-term call, sell shorter-term higher strike call - time decay play.
broken butterfly • skip strike butterfly • asymmetric butterfly
Modified butterfly with bullish bias - asymmetric risk/reward profile.
buy-write • covered write • stock plus call
Own 100 shares + sell call - generate income with limited upside.
buy put • naked put • put option purchase
Buy a put option - profit from downward stock movement with limited risk.
short call spread • call credit spread • vertical call spread
Sell lower strike call, buy higher strike call - profit from stock staying below short strike.
long put spread • put debit spread • vertical put spread
Buy higher strike put, sell lower strike put - cheaper bearish play.
sell call • naked call • call writing
Sell a call option - collect premium betting stock won't rise above strike.
put backspread • reverse put ratio spread • ratio put spread
Sell 1 higher strike put, buy 2+ lower strike puts - profit from large downward moves.
front ratio spread • call ratio • 1x2 call spread
Buy 1 lower strike call, sell 2+ higher strike calls - neutral to bearish.
diagonal spread • time spread with strikes • poor man's covered put
Buy longer-term put, sell shorter-term lower strike put - time decay play.
broken butterfly • skip strike butterfly • asymmetric butterfly
Modified butterfly with bearish bias - asymmetric risk/reward profile.
synthetic short stock • combo • long put + short call
Buy put + sell call at same strike - mimics short stock position.
iron condor spread • neutral iron condor • credit condor
Sell call spread + sell put spread - profit from low volatility.
iron fly • credit butterfly • short straddle with wings
Short straddle with protective wings - profit from stock staying at center strike.
call fly • long butterfly • debit butterfly
Buy 1 low call + sell 2 middle calls + buy 1 high call - profit at middle strike.
put fly • long butterfly • debit butterfly
Buy 1 high put + sell 2 middle puts + buy 1 low put - profit at middle strike.
horizontal call spread • time spread • same strike calendar
Sell short-term call + buy long-term call - profit from time decay.
horizontal put spread • time spread • same strike calendar
Sell short-term put + buy long-term put - profit from time decay.
reverse jade lizard • lizard • short naked put + bear call spread
Short put + bear call spread - profit from time decay and volatility crush.
double calendar • diagonal iron condor • time diagonal
Calendar spread on both calls and puts - complex time decay play.
sell guts • naked guts • ITM straddle
Sell ITM call + sell ITM put - collect large premium.
long condor • debit condor • wide butterfly
Like butterfly but with wider body - profit from range-bound movement.
buy straddle • straddle purchase • ATM straddle
Buy call + buy put at same strike - profit from large moves in either direction.
buy strangle • strangle purchase • OTM straddle
Buy OTM call + buy OTM put - cheaper than straddle.
sell straddle • naked straddle • short combo
Sell call + sell put at same strike - profit from low volatility.
sell strangle • naked strangle • wide short straddle
Sell OTM call + sell OTM put - wider profit zone.
reverse butterfly • inverse fly • short fly
Opposite of long butterfly - profit from movement away from center.
reverse butterfly • inverse fly • short fly
Opposite of long put butterfly - profit from movement away from center.
long iron condor • debit iron condor • inverted condor
Buy call spread + buy put spread - profit from large moves.