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Category: F&O

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.

Short-Call-Option-trading-strategy

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
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Short-Call-Option-trading-strategy

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
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Short-Call-Option-trading-strategy

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
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Short-Call-Option-trading-strategy

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
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Short-Call-Option-trading-strategy

Long Put Option Trading Strategy-Bearish Strategy

Explanation A long put option trading strategy is a single-leg option strategy used by a trader/dealer when he perceives market volatility with a bias towards the downside. To execute this
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Short-Call-Option-trading-strategy

Short Call Option trading strategy-Bearish Strategy

Explanation A short call is a single-leg options trading strategy for traders who believe the market will trade bearish in the short term. Market players who use this strategy go
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How to Use Implied Volatility in Options Trading: Strategies

Ratio Call Spread-Neutral Strategy

Explanation Ratio call spread is implemented by traders who are neutral on the market and bearish on the volatility in the near future. The strategy involves buying a number of
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How to Use Implied Volatility in Options Trading: Strategies

ShortGuts-Neutral Strategy

Explanation Short gut is a variant of the short Strangle option strategy and is implemented by a trader when he/she sees no volatility in the market and expects the underlying
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How to Use Implied Volatility in Options Trading: Strategies

Ratio Call Write-Neutral Strategy

Explanation Ratio call write is a neutral options trading strategy. This options strategy is constructed with ownership of the underlying security or going long on future contract and simultaneously selling
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How to Use Implied Volatility in Options Trading: Strategies

Long Guts-Neutral Strategy

Explanation A long gut is a variant of the Long Strangle option strategy and is implemented by a trader when he/she is non-directional on the movements of the underlying but
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