A bear call spread is a limited-risk, limited-reward strategy, consisting of one short call option and one long call option. |
The cash-secured put involves writing a put option and simultaneously setting aside the cash to buy the stock if assigned. |
This strategy consists of writing a call that is covered by an equivalent long stock position. |
This strategy is used to arbitrage a put that is overvalued because of its early-exercise feature. |
This strategy profits if the underlying stock moves up to, but not above, the strike price of the short calls. |
This strategy is appropriate for a stock considered to be fairly valued. |
This strategy profits if the underlying security is between the two short call strikes at expiration. |
This strategy profits if the underlying security is between the two short put strikes at expiration. |
This strategy consists of writing an uncovered call option. |
A naked put involves writing a put option without the reserved cash on hand to purchase the underlying stock. |
This strategy profits from the different characteristics of near and longer-term call options. |
This strategy profits if the underlying stock is inside the inner wings at expiration. |
This strategy profits if the underlying stock is inside the wings of the iron butterfly at expiration. |
This strategy can profit from a steady stock price, or from a falling implied volatility. |
This strategy can profit from a slightly falling stock price, or from a rising stock price. |
This strategy involves selling a call option and a put option with the same expiration and strike price. |
This strategy profits if the stock price and volatility remain steady during the life of the options. |