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Part 4 Institutional Trading

96
Types of Option Trading Strategies

Option traders use different strategies depending on their market view:

Bullish Strategies: Buying Call Options, Bull Call Spreads.

Bearish Strategies: Buying Put Options, Bear Put Spreads.

Neutral Strategies: Iron Condor, Straddle, Strangle — for when the trader expects low volatility.
These strategies help balance risk and reward, allowing traders to profit even in sideways markets.

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