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 made for net debit investment. The purpose of selling the additional strike is to reduce the cost of premium. Risk: Losses are limited to the […]

Explanation Bull call ladder option trading strategy is a neutral to moderately bullish strategy. This strategy is implemented for net debit investments and offers limited return (when market stays in between Middle strike (ATM) and higher Strike (OTM) Call) with unlimited loss potential. Execution of bull call ladder entails buying 1 in-the-money (ITM) or 1 […]

Explanation A strip is a bearish option trading strategy made for net debit investment and is similar to a long straddle, the only difference between a strip and long straddle is that the trader is long ontwo put options instead of one.A trader executes this strategy when he/she is holding a very bearishview on the market […]

Explanation A strap is a bullish option trading strategy similar to a long straddle, the only difference between a strap and long straddle is that the trader purchases two call options instead of one.A trader executes this strategy when he/she is very bullish on the market and volatility with bias primarily toward the upside. At the […]

Explanation In Short Put Butterfly strategy, a trader is neutral in nature and expects the market move in either direction at the time of expiry. A short put butterfly option strategy is opposite of long put butterfly spread. It is a three-part strategy that involves selling and buying put option. Implementation of this option strategy […]