Options Strategies
Each strategy: setup, payoff, Greeks, break-evens and the volatility regime it needs.
Volatility
Calendar Spread Explained
A calendar spread sells a short-dated option and buys a longer-dated one at the same strike, profiting as the front leg decays faster than the back.
Long Butterfly Spread Explained
A long butterfly buys one call, sells two higher-strike calls, and buys one further call: a cheap, defined-risk bet that the underlying finishes near the middle strike.
Long Straddle Explained
A long straddle buys an at-the-money call and put together: a pure bet that the underlying makes a large move, in either direction, before expiration.
Hedging
Collar Strategy Explained
A collar holds stock, buys a put for downside protection, and sells a call to pay for it, capping both the loss and the gain in a defined band.
Protective Put Explained
A protective put buys a put against stock you own, putting a floor under the position for the cost of the premium, like insurance on your shares.
Income
Iron Butterfly Explained
An iron butterfly sells an at-the-money call and put and buys wings around them: a defined-risk trade that collects a large credit and profits if the underlying pins the strike.
Short Strangle Explained
A short strangle sells an out-of-the-money call and put at once, collecting premium and winning as long as the underlying stays inside a wide range.
Bull Put Spread Explained
A bull put spread sells a put and buys a lower one for a net credit: a defined-risk, mildly bullish trade that profits if the stock holds above the short strike.
The Wheel Strategy Explained
The wheel is an income loop: sell cash-secured puts until assigned, sell covered calls on the shares until called away, then repeat, collecting premium at every step.
Covered Call Explained
A covered call is long stock plus a short call against it: you collect premium and cap your upside in exchange for a small cushion on the downside.
Cash-Secured Put Explained
A cash-secured put sells a put and sets aside the cash to buy the stock at the strike, paying you premium to wait for a lower entry.
Iron Condor Explained
An iron condor sells a call spread and a put spread around the current price. You collect premium and win as long as the underlying stays inside a range into expiration.
Directional
Bull Call Spread Explained
A bull call spread buys a call and sells a higher-strike call for a net debit: a cheaper, defined-risk way to trade a moderate rally.
Poor Man's Covered Call (PMCC) Explained
A PMCC replaces the 100 shares of a covered call with a deep-in-the-money LEAPS call, then sells short-dated calls against it for a fraction of the capital.