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strategy for trading options

Nifty Trading strategies for options

What exactly is an option trading strategy?

An option trading strategy is a hybrid combination of futures and options, or of two different options, that results in a product with defined risk, returns, or both. Option strategies are possible due to the unique nature of options, which are volatile in nature.

Options strategies are generally classified into six categories, which are as follows:

  1. Bullish strategies
  2. Bearish strategies
  3. Moderately bullish strategies
  4. Moderately bearish strategies
  5. Volatile strategies
  6. Range bound strategies

Protective Puts, Covered Calls and Collars

These are the three most fundamental strategies that are employed on a regular basis. These three options strategies are simple to understand and execute in the F&O Market, despite the fact that they are part of … Read the rest