This module will focus on some basic strategies to use in bull markets – when prices rise – and in bear markets – where prices fall. As you may have gathered from earlier lessons, the characteristics of options requires skill and precision when making investment decisions. These strategies are displayed to give you an idea of what might work when making investing decisions.
In this module:
- We’ll explain several strategies for either type of market outlook;
- Walk you through what they are designed to achieve; and
- We’ll further provide a practical demonstration of how to set up each trade using IBKR’s Trader Workstation.
By the end of this module, you should have a clear understanding of how to use options to plan for both up and down markets.
Disclosure: Interactive Brokers
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers LLC, its affiliates, or its employees.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Disclosure: Multiple Leg Strategies
Multiple leg strategies, including spreads and straddles, will incur multiple commission charges.
Disclosure: Options Trading
Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options” also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901.Multiple leg strategies, including spreads, will incur multiple commission charges.