What are the four basic option strategies?

Since there are two types of options, puts and calls, and either one can be either purchased or written, we obtain a total of four basic option strategies: buy call, buy put, write call, and write put.

How many options strategies are there?

But, there are roughly three types of strategies for trading in options. Firstly, you have the bullish strategies like bull call spread and bull put spread. Secondly, you have the bearish types of strategy such as bear call spread and bear put spread.

What is net credit in Opstra options?

In finance, a credit spread, or net credit spread is an options strategy that involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. It is designed to make a profit when the spreads between the two options narrows.

What is breakeven in Opstra?

The point at which the trader is at no loss no profit. For Ex. If You buy 100CE and 90PE option at 5rs. each (total premium paid 10rs.) when the strike is at 95rs./- then the breakeven would be when stock moves to 110rs. or 80rs.

What are the best options strategies for beginners?

Butterfly Spread: An advanced neutral trading strategy. Buy Call Options: See Long Call. Buy Put Options: See Long Put. Calendar Call Spread: A simple neutral trading strategy. Calendar Put Spread: A simple neutral trading strategy.

What are the different types of Bear options trading strategies?

Bear Put Ladder Spread: A complex bearish trading strategy. Bear Put Spread: A bearish trading strategy that is suitable for beginners. Bear Ratio Spread: A complex bearish trading strategy. Box Spread, Conversion & Reversal Arbitrage and Strike Arbitrage: See Options Arbitrage Strategies.

What are the different types of trading strategies?

Bull Ratio Spread: A complex bullish trading strategy. Butterfly Spread: An advanced neutral trading strategy. Buy Call Options: See Long Call. Buy Put Options: See Long Put. Calendar Call Spread: A simple neutral trading strategy. Calendar Put Spread: A simple neutral trading strategy. Calendar Straddle: An advanced neutral trading strategy.

What are the different types of options arbitrage strategies?

Box Spread, Conversion & Reversal Arbitrage and Strike Arbitrage: See Options Arbitrage Strategies. Bull Butterfly Spread: A complex bullish trading strategy. Bull Call Ladder Spread: A complex bullish trading strategy. Bull Call Spread: A bullish trading strategy that is suitable for beginners.