Options Trading Strategies: Strap
The strap is a three-legged strategy, created by buying two At The Money calls and one At The Money put, all with the same strike price and an expiration date. You can also buy...
hedging
Options Trading Strategies: Strip
The strip is a three-legged strategy, created by buying one At The Money call and two At The Money puts, all with the same strike price and an expiration date. You can also buy...
Options Trading Strategies: Protective Call
The opposite position to the protective put strategy, the protective call is also a hedging strategy in which you hold a short position on the underlying asset, and buy an At The Money or Out of The Money call options to protect against the price rise of an underlying asset. The protective call strategy is also called a synthetic long put, as its profit...
Options Trading Strategies: Protective Put
A protective put, also called a married put, is a hedging options trading strategy where a trader, holding a BTC/ETH, purchases an At The Money put option to protect against potential depreciation in the...
Options Trading Strategies: Covered Straddle
The covered straddle is a three-legged strategy, created by buying (or owning) the underlying security and selling one At The Money call and one At The Money put, both with the same expiration date...
Options Trading Strategies: Collar
Collar is a three-legged strategy where the you buy, or already own the underlying security, buy one OTM put and sell one OTM call, both with the same expiration date. The collar strategy is...
Options Trading Strategies: Covered Put
Covered put is a two legged strategy that includes a short position on the underlying asset and a sold put. When to use this strategy? You are neutral to bearish and want to earn...
Options Trading Strategies: Covered Call
Covered call is a two legged strategy where the trader owns the underlying security, and sells calls on a regular basis to collect an income. For example, if you own 0.5 BTC you will...