Synthetic Short Stock Options Strategy The synthetic short stock options strategy consists of simultaneously selling a call option and buying the same number of put options at the same strike price. Both options must be in the same expiration cycle. As the strategy’s name suggests, a synthetic short stock position replicates shorting 100 shares of […]
The Collar | Ultimate Option Strategy Guide
The Collar Options Trading Strategy The collar options strategy consists of simultaneously selling a call option and buying a put option against 100 shares of long stock. Buying a put option against long shares eliminates the risk of the shares below the put strike, while selling a call option limits the profit potential of shares above the call strike.By […]
Protective Put Explained – The Ultimate Guide
Protective Put Explained – The Ultimate Guide The protective put options strategy (also known as a “married put”) consists of buying a put option against 100 shares of long stock. As the name suggests, a protective put is a defensive strategy that reduces the risk of owning shares of stock.When a put is purchased against 100 […]
Covered Strangle Strategy (Best Guide w/ Examples)
The Covered Strangle Options Strategy The covered strangle strategy is a bullish strategy that consists of simultaneously buying 100 shares of stock while also selling a strangle. The strangle is “covered” because the long shares “cover” the risk of the short call. A normal short strangle position has unlimited upside risk, but when 100 shares are […]
Synthetic Long Stock Strategy (Best Guide w/ Examples)
Synthetic Long Stock Explained – The Ultimate Guide The synthetic long stock position consists of simultaneously buying a call option and selling the same number of put options at the same strike price. Both options must be in the same expiration cycle. As the strategy’s name suggests, a synthetic long stock position replicates buying and holding […]
Bear Put Spread Strategy (Best Guide w/ Examples)
Bear Put Spread Explained – The Ultimate Guide The purchase of a put spread (a “long put spread” or “bear put spread” position) is a bearish options strategy that consists of simultaneously buying a put option and selling the same number of put options at a lower strike price on a stock that a trader […]