Part 1 Trading Master Class

Types of Option Strategies

Options allow traders to design strategies based on market view—bullish, bearish, or neutral. Some popular strategies:

A. Bullish Strategies

Long Call – Buy a call option to profit from price rise.

Bull Call Spread – Buy lower strike call, sell higher strike call to reduce cost.

Synthetic Long – Buy call + sell put = behaves like futures long.

B. Bearish Strategies

Long Put – Buy a put option to profit from fall.

Bear Put Spread – Buy higher strike put, sell lower strike put.

Synthetic Short – Sell call + buy put = behaves like futures short.

C. Neutral/Sideways Strategies

Straddle – Buy call and put at same strike (profit from volatility).

Strangle – Buy call and put at different strikes (cheaper than straddle).

Iron Condor – Sell OTM call & put, buy further OTM call & put (profit from low volatility).

D. Income/Theta Strategies

Covered Call – Hold stock + sell call option for extra income.

Cash-Secured Put – Sell put option while keeping cash aside to buy stock if assigned.