Stock Market Trading Academy

Common Option Strategies:

1. Basic Strategies

   • Long Call – Buying a call option to profit from a rising stock price.
   • Long Put – Buying a put option to profit from a falling stock price.
   • Covered Call – Holding a stock and selling a call option on it to generate income.
   • Protective Put – Holding a stock and buying a put option as insurance against a decline.

2. Spreads (Limited Risk & Reward)

   • Bull Call Spread – Buying a lower strike call and selling a higher strike call to profit from moderate price increases.
   • Bear Put Spread – Buying a higher strike put and selling a lower strike put to profit from moderate price drops.
   • Iron Condor – Selling a lower strike put and higher strike call while buying a further out-of-the-money put and call, aiming for small movements and time decay profits.

3. Volatility Strategies

   • Straddle – Buying a call and a put at the same strike price to profit from big price swings in either direction.
   • Strangle – Buying a call and a put with different strike prices to profit from high volatility.