Level: Advanced

Learn about more about advanced option strategies.

Contributed By: The Options Industry Council (OIC)
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.

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.

This strategy consists of adding a long put position to a long stock position.

This strategy consists of writing a call that is covered by an equivalent long stock position.