Short-Call-Option-trading-strategy

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 asset but at the same time bullish on the volatility. Implementation of the strategy involves selling a number of put options and buying more put […]

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 (ITM) put option and 1 short put with a lower strike price (OTM). Both puts have the same underlying stock and the same expiration date. […]

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 number of In-the-money (ITM) calls and going long on out-the-money (OTM) call options. Both calls have the same underlying stock and the same expiration date. […]

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 a put option for some short-term profits. This strategy is exactly the opposite and works the same way as the Covered Call strategy, except that […]

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 sudden upside movement seen in the underlying. The process is known as hedging the short position by going long on at–the–money or slightly out of–money […]