Table of Contents
How to Use Option Strategies or Option Strategies Cheat Sheet?
Which Option Strategies to use when can be done by below Cheat Sheet :
| Option Strategy | Price Outlook | Volatility Outlook | Profit Potential | Risk |
|---|---|---|---|---|
Long Calls(Naked Call Buy) |
Bullish | Rising | Unlimited | Limited |
Long Puts(Naked Put Buy) |
Bearish | Rising | Unlimited | Limited |
Short Calls(Naked Call Sell) |
Bearish | Falling | Limited | Unlimited |
Short Puts(Naked Put Sell) |
Bullish | Falling | Limited | Unlimited |
Covered Call |
Bullish | Falling | Limited | Unlimited |
Protective Put |
Bullish | Stable | Unlimited | Limited |
Bull Put Spread |
Bullish | Rising | Limited | Limited |
Bear call Spread |
Bearish | Falling | Limited | Limited |
Bull Call Spread |
Bullish | Rising | Limited | Limited |
Bear Put Spread |
Bearish | Falling | Limited | Limited |
| Bear Call Ladder Strategy | Bearish | Falling | UnLimited | UnLimited |
| Iron Condors | Neutral | Falling | Limited | Limited |
| Iron Butterfly Spreads | Neutral | Falling | Limited | Limited |
Calendar Spreads |
Neutral | Rising | Limited | Limited |
Double Calendars |
Neutral | Rising | Limited | Limited |
| Short Strangle | Neutral | Falling | Limited | Unlimited |
| Short Straddle | Neutral | Falling | Limited | Unlimited |
| Long Strangle | Neutral | Rising | Unlimited | Limited |
| Long Straddle | Neutral | Rising | Unlimited | Limited |
Put RatioSpreads |
Neutral to Bullish | Falling | Limited | Limited |
Put Ratio Back spreads |
Neutral to Bearish | Rising | Unlimited | Limited |
Call Ratio Spreads |
Neutral to Bearish | Falling | Limited | Unlimited |
Call Ratio Backspreads |
Neutral to Bullish | Rising | Unlimited | Limited |
Poor Man’s Covered Call |
Bullish | Falling | Limited | Limited |
Poor Man’s Covered put |
Bearish | Rising | Limited | Limited |
The Collar |
Bullish | Falling | Limited | Limited |
Broken Wing Butterfly With Puts |
Bullish | Falling | Limited | Limited |
Broken Wing Butterfly With Calls |
Bearish | Falling | Limited | Limited |
| Synthetic Long Stock | Bullish | Neutral | Unlimited | Limited |
| Synthetic Short Stock | Bearish | Neutral | Limited | Unlimited |
Risk Reversal |
Bullish | Neutral | Unlimited | Limited |
Stock Repair Strategy |
Bullish | Falling | Limited | Limited |