ICICI Bank Limited
Education

Part 1 Ride The Big Moves

82
Types of Option Trading Strategies
a. Bullish Strategies

Long Call – Buy CE

Bull Call Spread – Buy CE and Sell higher CE

Cash Secured Put – Sell PE with intention to buy shares

b. Bearish Strategies

Long Put – Buy PE

Bear Put Spread – Buy PE and Sell lower PE

Covered Call – Sell CE while holding shares

c. Neutral Strategies

Straddle – Buy both CE and PE

Strangle – Buy OTM CE and PE

Iron Condor – Sell CE & PE with hedges to capture premium

Butterfly Spread – Low risk, limited profit strategy

Neutral strategies are popular on weekly expiry days when markets stay range-bound.

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