Bear Call Spread Explained – The Ultimate Guide The bear call spread (selling a call spread – also known as a “short” call spread) is a bearish options strategy that consists of simultaneously selling a call and buying a call at a higher strike price (same expiration cycle). The strategy builds on a naked short call […]
Covered Put Writing Explained (Best Guide w/ Examples)
Covered Put Options Strategy – The Ultimate Guide Covered put writing options strategy consists of selling a put option against at least 100 shares of short stock. By itself, selling a put option is a highly risky strategy with significant loss potential. However, when combined with a short stock position of 100 shares, selling a put […]
Short Call Options Strategy (Best Guide w/ Examples)
Short Call Option Explained – The Ultimate Guide The “short call” options strategy (selling a call option) is a bearish options strategy that consists of selling a call option on a stock that a trader believes will decrease in price (or not increase to a level above the call’s strike price before expiration). Short Call Strategy […]
Long Put Options Strategy (Best Guide w/ Examples)
Long Put Option Explained (The Ultimate Guide) Buying a put option (sometimes referred to as a “long put option”) is a bearish strategy that benefits from a drop in the stock price or an increase in implied volatility. Buying a put option is similar to shorting shares of stock, except buying puts has limited loss potential and a lower […]
Short Iron Butterfly Explained (Best Guide w/ Examples)
Short Iron Butterfly Explained – The Ultimate Guide The short iron butterfly options strategy consists of simultaneously selling a call and put at the same strike price, and purchasing an out-of-the-money call and put against the short options. All options are in the same expiration cycle. A short iron butterfly position can be conceptualized in two ways: 1) Simultaneously […]
Short Straddle Options Strategy (Best Guide w/ Examples)
Short Straddle Explained – The Ultimate Guide The short straddle is an options strategy that consists of selling call and put option on a stock with the same strike price and expiration date. Most of the time, a short straddle trader will sell the at-the-money options. Since the sale of an at-the-money call is a bearish strategy, and selling a put […]