1. Covered Call
2. Married Put
3. Bull Call Spread
4. Bear Put Spread
5. Protective Collar
6. Long Straddle
7. Long Strangle
8. Butterfly Spread
9. Iron Condor
An even more interesting strategy is the iron condor. In this strategy, the investor simultaneously holds a long and short position in two different strangle strategies. The iron condor is a fairly complex strategy that definitely requires time to learn, and practice to master. (We recommend reading more about this strategy in Take Flight With An Iron Condor, Should You Flock To Iron Condors? and try the strategy for yourself (risk-free!) in the Investopedia Simulator.)
10. Iron Butterfly
Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
TradingWhen you’re ready to move beyond the basics of investing, it’s time to learn your options.
TradingHere is a quick introduction to four options strategies that traders should know.
TradingA butterfly spread is a neutral options strategy with both limited risk and limited profit potential. The strategy involves four options contracts with the same expiration month but with three ...
TradingLearn how long straddles, long strangles and vertical debit spreads can help you profit from the volatility that stock analysts expect for 2016.
TradingA bull call spread, also called a vertical spread, involves buying a call option at a specific strike price and simultaneously selling another call option at a higher strike price.
TradingBull spread option strategies, such as a bull call spread strategy, are hedging strategies for traders to take a bullish view while reducing risk.
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TradingThis relatively simple strategy is designed to provide a profit for investors who believe that there will be minimal price movement in the underlying security until expiration.
TradingBeginning traders often ask not when they should buy options, but rather, when they should sell them.
TradingA brief overview of how to profit from using put options in your portfolio.