Strategies - Option Buying
: Buy a higher-strike put and sell a lower-strike put. It limits both potential loss and reward while making the trade more cost-effective.
Spreads help manage risk by simultaneously selling another option to offset the cost of the one you bought. option buying strategies
: An aggressive strategy where you sell one ATM call and buy two or more OTM calls. It profits from high upward volatility with limited downside risk. 10 Options Strategies Every Investor Should Know : Buy a higher-strike put and sell a lower-strike put
: Used when you are bearish . You buy a put option expecting the stock price to fall significantly. : An aggressive strategy where you sell one
: Combines a long stock position with a long put option to create a "floor" for potential losses. It acts as an insurance policy for your existing holdings. 2. Volatility Strategies (Non-Directional)