Long Put Butterfly-Neutral Strategy
Explanation Long Put Butterfly is a neutral – three-part option strategy where a trader assumes a bearish market scenario with low volatility.This option strategy involves selling and buying put option,
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 Butterfly-Neutral Strategy
Explanation A short call butterfly option strategy is opposite of long call butterfly spread. It is a three-part strategy that involves selling and buying call option. Implementation of this option
Long Call Butterfly-Neutral Strategy
Explanation A long call butterfly spread is a three-part strategy that involves selling and buying call option.For executing this option strategy, it involves buying one higher out-of-the-money (OTM)strike call, selling
Short Strangle-Neutral Strategy
Explanation Short Strangle option strategy is similar to Short Straddle.The only difference is of the strike prices at which the positions are built.Executing of short strangleis made for net credit
Long Strangle-Neutral Strategy
Explanation A long Strangle is in many ways similar to a long Straddle option strategy. While executing a Strangle, a trader will buy one out-of-the-moneycall option and one out-of-the-money put
Short Straddle-Neutral Strategy
Explanation Short straddle is opposite of long straddle and is one of the most commonly used option strategies in the neutral market to earn premium. This option strategy is used
Long Straddle-Neutral Strategy
Explanation Long straddle is one of the most commonly used option strategies in the volatile market. This option strategy is used when the trader is sure about the level of
Diagonal Bull Call Spread Explanation-Bullish Strategy
Diagonal Bull Call Spread Explanation This strategy is typically employed when the trader is bullish in the longer term and moderately neutral to bullish on the underlying stock over the
Covered Combination Option Strategy-Bullish Strategy
Explanation A covered combination also known as covered combos is an investment strategy that entails selling an out-of-the-money (OTM) call and an out-of-the-money (OTM) put with the same expiry and
Protective Put Option Strategy-Bullish Strategy
Protective Put Option Strategy The Protective Put option strategy is a derivative strategy used to protect against unfavorable downside risk. When an investor is long on the underlying security but
