Too often, traders jump into the options game with little or no understanding of how many options strategies are available to limit their risk and maximize return. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power of options as a trading vehicle. With this in mind, we've put together this basic directions and neutral option strategies, which we hope will point you in the right direction.
ПОКУПКА CALL
Example: Buy call
Market Outlook: Bullish
Risk: Limited
Reward: Unlimited
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Strike price plus premium paid
Synthetic Long Call
Example: Buy futures; buy put
Market Outlook: Carefully bullish
Risk: Limited
Reward: Unlimited
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Starting futures price plus premium paid
Covered Call
Example: Buy futures; sell calls
Market Outlook: Neutral to slightly bullish
Risk: Limited, but substantial (risk is from a fall in futures price)
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Starting futures price minus premium received
Short Put
Example: Sell put
Market Outlook: Neutral to slightly bullish
Risk: Limited, but substantial
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Minimum strike price minus premium received
Bull Call Spread
Example: Buy 1 call; sell 1 call at higher strike
Market Outlook: Bullish
Risk: Limited
Reward: Limited
Increase in Volatility: Helps or hurts depending on strikes chosen
Time Erosion: Helps or hurts depending on strikes chosen
Break-Even Point (BEP): Long call strike plus net premium paid
Bull Put Spread
Example: Sell 1 put; buy 1 put at lower strike with same expiry
Market Outlook: Neutral to bullish
Risk: Limited
Reward: Limited
Increase in Volatility: Typically hurts position slightly
Time Erosion: Helps position
Break-Even Point (BEP): Short put strike minus credit received
Long Put
Example: Buy put
Market Outlook: Bearish
Risk: Limited
Reward: Limited, but substantial
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Strike price minus premium paid
Synthetic Long Futures
Example: Buy call; sell put
Market Outlook: Bullish
Risk: Unlimited
Reward: Unlimited
Increase in Volatility: Does not affect the position strongly
Time Erosion: Does not affect the position strongly
Break-Even Point (BEP): Strike Price of Long Call + Net Premium Paid
Covered Put
Example: Sell put; sell futures
Market Outlook: Bearish
Risk: Unlimited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Sale Price of Underlying + Premium Received
Short Call
Example: Sell call
Market Outlook: Bearish
Risk: Unlimited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Strike Price of Short Call + Premium Received
Bear Put Spread
Example: Sell 1 put; buy 1 put at higher strike
Market Outlook: Bearish
Risk: Limited
Reward: Limited
Increase in Volatility: Helps or hurts depending on strikes chosen
Time Erosion: Helps or hurts depending on strikes chosen
Break-Even Point (BEP): Long put strike minus net premium paid
Bear Call Spread
Example: Sell 1 call; buy 1 call at higher strike
Market Outlook: Neutral to bearish
Risk: Limited
Reward: Limited
Increase in Volatility: Typically hurts position slightly
Time Erosion: Helps position
Break-Even Point (BEP): Short call strike plus credit received
Synthetic Short Futures
Example: Sell 1 call; buy 1 put
Market Outlook: Bearish
Risk: Unlimited
Reward: Unlimited
Increase in Volatility: Does not affect the position strongly
Time Erosion: Does not affect the position strongly
Break-Even Point (BEP): Strike Price of Long Put + Net Premium Received
Short Straddle
Example: Sell 1 call; sell 1 put at same strike
Market Outlook: Neutral
Risk: Unlimited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Two BEPs 1. Call strike plus premium received 2. Put strike minus premium received
Synthetic Long Put
Example: Buy call; sell futures
Market Outlook: Bearish
Risk: Limited
Reward: Unlimited
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Sale Price of Underlying - Premium Paid
Short Strangle
Example: Sell 1 call with higher strike; sell 1 put with lower strike
Market Outlook: Neutral
Risk: Unlimited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Two BEPs 1. Call strike plus premium received 2. Put strike minus premium received
Long Condor
Example: Sell put; buy put (Lower Strike); sell call; buy call (Higher Strike)
Market Outlook: Neutral
Risk: Limited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Two BEPs 1. Strike Price of Short Call + Net Premium Received 2. P Strike Price of Short Put - Net Premium Received
Long Butterfly
Example: Sell 2 calls; buy 1 call at next lower strike; buy 1 call at next higher strike (the strikes are equidistant)
Market Outlook: Neutral around strike
Risk: Limited
Reward: Limited
Increase in Volatility: Typically hurts position
Time Erosion: Typically helps position
Break-Even Point (BEP): Two BEPs 1. Lower long call strike plus net premium paid 2. Higher long call strike minus net premium paid
