Part 12 Trading Master Class With Experts Common Option Trading Strategies
Options can be combined in different ways to create strategies with defined risk and reward profiles.
Some popular strategies include:
Covered Call – Holding a stock and selling a call option on it (income strategy).
Protective Put – Holding a stock and buying a put to protect downside risk.
Straddle – Buying both call and put at the same strike to profit from big moves.
Strangle – Similar to a straddle, but strikes are different.
Iron Condor – Selling both a call and a put spread to profit from a sideways market.
