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Option Strategies

Options are a popular vehicle traders/investors use with regards to pulling money from the market. There are three main uses of options: portfolio protection, generation of income on a portfolio, and for pure speculation.

Here we discuss numerous option trading strategies that are typically used by successful option traders.

Bullish
Long Calls
Bull Call Spread
Bull Put Spread
Call Backspread
Long Call Ratio
  Spread

Naked Put
Synthetic Long Stock

The Collar
Covered Calls
Synthetic Long Call
Synthetic Short Put
Covered Straddle
Covered Strangle
Married Put
Protective Put
Bearish
Long Puts
Bear Put Spread
Bear Call Spread
Put Backspread
Long Put Ratio
  Spread

Naked Calls
Synthetic Short Stock
Synthetic Short Stock
  (split strikes)


Covered Put
Protective Call
Synthetic Short Call
Synthetic Long Put
Long Volatility
Long Straddle
Long Strangle
Short Call Butterfly
Short Put Butterfly
Short Iron Butterfly
Short Call Condor
Short Put Condor
Short Iron Condor
Long Guts
Strip
Strap
Short Call Ladder
Short Put Ladder

Long Call Synthetic
  Straddle

Long Put Synthetic
  Straddle

Short Volatility
Short Straddle
Short Strangle
Long Call Butterfly
Long Put Butterfly
Long Iron Butterfly
Long Call Condor
Long Put Condor
Long Iron Condor
Short Guts
Long Call Ladder
Long Put Ladder
Call Ratio Spread
Short Call Ratio
   Spread

Put Ratio Spread
Short Put Ratio
   Spread


Ratio Call Write
Ratio Put Write
Short Call Synthetic
   Straddle

Short Put Synthetic
   Straddle

Variable Ratio Write

Recommended Reading


McMillan on Options
by Lawrence G. McMillan

Options as a Strategic Investment
by Lawrence McMillan

The Options Advisor
by Bernie Schaeffer

DeMark On Day Trading Options
by Thomas DeMark and Thomas DeMark, Jr.