Level: Advanced
Learn about more about advanced option strategies.
Lesson: #1
Bull Call Spread
This strategy consists of buying one call option and selling another at a higher strike price to help pay the cost.
Lesson: #2
Bear Put Spread
A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.
Lesson: #3
Long Straddle
This strategy consists of buying a call option and a put option with the same strike price and expiration.
Lesson: #4
Short Straddle
This strategy involves selling a call option and a put option with the same expiration and strike price.
Lesson: #5
Long Strangle
This strategy profits if the stock price moves sharply in either direction during the life of the option.
Lesson: #6
Short Strangle
This strategy profits if the stock price and volatility remain steady during the life of the options.
Lesson: #7
Long Calendar Spreads
This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.
Lesson: #8
Short Iron Condor
This strategy profits if the underlying stock is inside the inner wings at expiration.
Lesson: #9
Call Backspread
A call backspread strategy is a strategy that can be used by an investor who strongly believes a stock is going to go up.
Lesson: #10
Put Backspread
A put backspread strategy is a strategy that can be used by an investor who strongly believes a stock is going to go down.
Lesson: #11
Trading Protective Puts
This strategy consists of adding a long put position to a long stock position.
Lesson: #12
Trading Covered Calls to Generate Income
This strategy consists of writing a call that is covered by an equivalent long stock position.