Common Option Trading Strategies
a) Basic Strategies
1. Long Call
Used when a trader expects strong upside movement. Risk is limited to the premium paid, while reward potential is theoretically unlimited.
2. Long Put
Used when expecting a sharp decline. Risk is limited to the premium, and profits increase as the underlying falls.
3. Covered Call
Involves holding the underlying stock and selling a call option. It generates regular income but caps upside potential.
4. Protective Put
Buying a put option against an existing long position. This acts as insurance, limiting downside risk.
a) Basic Strategies
1. Long Call
Used when a trader expects strong upside movement. Risk is limited to the premium paid, while reward potential is theoretically unlimited.
2. Long Put
Used when expecting a sharp decline. Risk is limited to the premium, and profits increase as the underlying falls.
3. Covered Call
Involves holding the underlying stock and selling a call option. It generates regular income but caps upside potential.
4. Protective Put
Buying a put option against an existing long position. This acts as insurance, limiting downside risk.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.