Options Trading Strategies

Explore all 36 options strategies with detailed implementation guides, reasoning, and examples

$100$10,000
-50%0%+50%

Simulating stock movement from $10.00 to $10.00

Showing 36 of 36 strategies

Long Call

beginner
bullish

A simple bullish strategy that gives the buyer the right to purchase a stock at a specific price.

Contracts: 15$-975
Return:-97.5%

Live P&L Calculation

Budget Allocated: $1,000

Contracts: 15

Stock Movement: 0%

Profit/Loss:$-975

Return:-97.5%

New Portfolio Value:$25

Why Use This Strategy?

The most basic bullish strategy. You buy a call because you believe the stock will rise significantly. The call gives you the right to buy shares at the strike price, creating unlimited profit potential.

How to Implement

  1. Buy a call option with a strike price near the current stock price
  2. Choose an expiration date 30-60 days out
  3. Pay the premium and monitor position
  4. Sell when profitable or let expire

Key Points

  • Limited risk to premium paid
  • Unlimited profit potential
  • Breakeven at strike price plus premium
  • Time decay works against you

Your Live Trade Example

YOUR TRADE SCENARIO:
Stock ABC currently trading at $10.00. Expecting a 0% move to $10.00.

Trade Ticket (1 Contract):
• Buy to Open 1 Call at Strike Price of $11.00 Expiring in 45 days
• Premium paid: $65 ($0.65 per share × 100 shares)

Your Results at $10.00:
• Call value: $0 (expires worthless)
• Profit/Loss: -$65 (total loss)
• Breakeven: $11.65 (strike + premium)

WHY THIS RESULT:
❌ MAXIMUM LOSS: Stock stayed below your $11.00 strike price, so the call expires worthless. You lose the entire $65 premium because there's no reason to exercise a call to buy shares at $11.00 when you can buy them cheaper in the market at $10.00.

With your $1,000 budget: 15 contracts = $-975 total P&L

Bull Put Spread

intermediate
bullish

A defined-risk bullish strategy where you sell a put and buy a lower strike put.

Contracts: 15+$525
Return:+52.5%

Bull Call Spread

intermediate
bullish

A defined-risk bullish strategy where you buy a call and sell a higher strike call.

Contracts: 22$-990
Return:-99.0%

Diagonal Call Spread

advanced
bullish

A bullish strategy that combines a longer-term call purchase with a shorter-term call sale.

Contracts: 10+$0
Return:+0.0%

Short Put

intermediate
bullish

A strategy which results in an initial credit by selling a put option.

Contracts: 25+$1000
Return:+100.0%

Call Broken Wing

advanced
bullish

Similar to a call spread, but with asymmetrical risk/reward.

Contracts: 10+$0
Return:+0.0%

Call Ratio Backspread

advanced
bullish

An advanced bullish strategy for large upward moves.

Contracts: 10+$0
Return:+0.0%

Inverse Put Broken Wing

advanced
bullish

Results in a skew call butterfly with directional bias.

Contracts: 10+$0
Return:+0.0%

Put Ratio Spread

advanced
bullish

A neutral to slightly bullish strategy with downside risk.

Contracts: 10+$0
Return:+0.0%

Protective Put

beginner
bullish

A strategy to limit downside risk when owning stock.

Contracts: 0+$0
Return:+0.0%

Long Put

beginner
bearish

A simple bearish strategy that gives the right to sell a stock at a specific price.

Contracts: 18$-990
Return:-99.0%

Bear Call Spread

intermediate
bearish

A defined-risk bearish strategy where you sell a call and buy a higher call.

Contracts: 16+$640
Return:+64.0%

Bear Put Spread

intermediate
bearish

A defined-risk bearish strategy where you buy a put and sell a lower put.

Contracts: 28$-980
Return:-98.0%

Diagonal Put Spread

advanced
bearish

A bearish strategy that combines a longer-term put purchase with a shorter-term put sale.

Contracts: 10+$0
Return:+0.0%

Short Call

advanced
bearish

A risky strategy which results in an initial credit by selling a call.

Contracts: 10+$0
Return:+0.0%

Put Broken Wing

advanced
bearish

Similar to a put spread, but with asymmetrical risk/reward.

Contracts: 10+$0
Return:+0.0%

Put Ratio Backspread

advanced
bearish

An advanced bearish strategy for large downward moves.

Contracts: 10+$0
Return:+0.0%

Inverse Call Broken Wing

advanced
bearish

Results in a skew put butterfly with directional bias.

Contracts: 10+$0
Return:+0.0%

Call Ratio Spread

advanced
bearish

A neutral to slightly bearish strategy with upside risk.

Contracts: 10+$0
Return:+0.0%

Iron Condor

intermediate
neutral

A neutral strategy combining bull put and bear call spreads.

Contracts: 13+$325
Return:+32.5%

Long Call Butterfly

intermediate
neutral

A neutral strategy combining bull and bear call spreads.

Contracts: 10+$0
Return:+0.0%

Long Put Butterfly

intermediate
neutral

A neutral strategy combining bull and bear put spreads.

Contracts: 10+$0
Return:+0.0%

Calendar Call Spread

intermediate
neutral

A time-based strategy using calls with different expiration dates.

Contracts: 10+$0
Return:+0.0%

Calendar Put Spread

intermediate
neutral

A time-based strategy using puts with different expiration dates.

Contracts: 10+$0
Return:+0.0%

Calendar Diagonal

advanced
neutral

Combines diagonal call and put spreads.

Contracts: 10+$0
Return:+0.0%

Iron Butterfly

intermediate
neutral

Combines bull put and bear call spreads at the same short strike.

Contracts: 10+$0
Return:+0.0%

Jade Lizard

intermediate
neutral

Combines a short put with a bear call spread.

Contracts: 10+$0
Return:+0.0%

Short Guts

advanced
neutral

Like a short strangle but put strike above call strike.

Contracts: 10+$0
Return:+0.0%

Iron Fly

intermediate
neutral

A short straddle with long protective wings to limit risk.

Contracts: 10+$0
Return:+0.0%

Straddle

intermediate
directional

Buying both a call and put at the same strike price.

Contracts: 8$-960
Return:-96.0%

Strangle

intermediate
directional

Buying out-of-the-money call and put options.

Contracts: 12$-960
Return:-96.0%

Short Put Butterfly

advanced
directional

Opposite of long put butterfly, profits from movement in either direction.

Contracts: 10+$0
Return:+0.0%

Short Call Butterfly

advanced
directional

Opposite of long call butterfly, profits from movement in either direction.

Contracts: 10+$0
Return:+0.0%

Short Call Condor

advanced
directional

Similar to short call butterfly with wider middle strikes.

Contracts: 10+$0
Return:+0.0%

Short Put Condor

advanced
directional

Similar to short put butterfly with wider middle strikes.

Contracts: 10+$0
Return:+0.0%

Reverse Iron Condor

advanced
directional

Opposite of an iron condor, profits from large price moves in either direction.

Contracts: 10+$0
Return:+0.0%