Basic Option Strategies

Overview of the Basic Options Strategies module which introduces topics such as how to use options for bull and bear market outlooks.

An investor might use a long call option position when the share price or market is expected to rise.

Create a long call in Trader Workstation (TWS) using Option Chain.

An investor might use a short put option position when the share price or market is expected to rise.

Create a short put in Trader Workstation (TWS) using Option Chain.

An investor might be bullish on the outlook for a stock, but may wish to generate income by standing ready to have the stock called away using the covered call strategy.

Create a covered call in Trader Workstation (TWS) using Strategy Builder.

An investor might use a long put option position when the share price or market is expected to decline.

Create a long put in Trader Workstation (TWS) using Option Chain.

An investor might be bearish on the outlook for a stock, but may wish to generate income by standing ready to have the stock put to him using the covered put strategy.

Create a covered put in Trader Workstation (TWS) using Strategy Builder.