Iron Butterfly-Neutral Strategy
Explanation Iron butterfly option strategy is initiated by an operator when he expects underlying to stay in range with low volatility from the underlying. The strategy is implemented for a
In financial markets, futures and options (F&O) are derivative products that derive their values from an underlying asset, be it a stock or commodity. Through the stock exchange, two investors enter into a contract to buy or sell an underlying at an agreed price on a fixed date.
Iron Condors-Neutral Strategy
Explanation: Iron Condors are essentially just a hedged short strangle which profits from low movement and low volatility. It is market neutral and has no directional bias. Since we indirectly
Ratio Put Write-Neutral Strategy
Explanation Taking base assumption on implementing this strategy is of little/no volatility, the trader capitalizes on the limited profit that is in the form of premium received. Ratio put write
Ratio Put Spread-Neutral Strategy
Explanation Put ratio spread is a multi-leg, neutral strategy with undefined risk and limited profit potential that involves buying in-the-money put options and selling more out-of-the-money put options of the
Diagonal Bear Put Spread-Bearish Strategy
Explanation A trader implements this strategy when he holds a neutral to somewhat bearish stance on the near-month expiry of the underlying but bearish on the long term, he will
Put Backspread Option Trading Strategy Nifty-Bearish Strategy
Explanation Put backspread options strategy also known as reverse put ratio spread is a bearish options strategy that is executed when a trader holds a bearish outlook on the underlying
Bear Put Spread Option Strategy-Bearish Strategy
Explanation A bear put spread strategy is executed when a trader is moderately bearish on the market. Execution of a strategy entails 1 long position in a higher strike price
Bear Call Spread Option Strategy-Bearish Strategy
Explanation Bear call spread strategy is used when an options trader expects a fall in the price of the underlying security. Executing a Bear Call Spread entails selling an equal
Covered Put Trading Strategy-Bearish Strategy
Explanation The covered put strategy is a bearish options strategy. The strategy involves shorting underlying stock in the expectation that the price of the security to fall and simultaneously selling
Protective Call Option Strategy-Bearish Strategy
Explanation Protective Call is a hybrid option strategy that involves trade in futures and options. This strategy is implemented by a trader to protect the short position in case of
