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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.

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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Options-Trading-Beginners

Neutral Calendar Spread-Neutral Strategy

Explanation A Long Call Calendar Spread is a strategy to gain from Theta with limited risk. The neutral calendar spread strategy is implemented if the trader is neutral in the
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Options-Trading-Beginners

Short Call Condor Spread-Neutral Strategy

Explanation Short Call Condor Spread is the opposite of Long Call Condor Spread. A Short Call Condor is a volatile market strategy which is executed for credit investment, meaning that
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Options-Trading-Beginners

Long Call Condor Spread-Neutral Strategy

Explanation Since this strategy is a neutral strategy and in order to make profits, the underlying asset should remain range bound i.e., between the 4 strikes.The long call condor investor
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Options-Trading-Beginners

Short Put Ladder-Neutral Strategy

Explanation A Short Put Ladder is a bearish option strategy when trader is bullish on volatility. This strategy is executed for net credit and is the extension of Bull Put spread.
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How to Use Implied Volatility in Options Trading: Strategies

Short Call Ladder-Neutral Strategy

Explanation Short Call Ladder is a bullish option strategyand is an extension to Bull Call Spread Strategy. This strategy is implemented for net credit investments and offers unlimited return (when
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Options-Trading-Beginners

Long Put Ladder-Neutral Strategy

Explanation This strategy is implemented when a trader is slightly bearish on the market as well as on volatility. Long Put Ladder options strategy is a bearish strategy which is
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