Option trading strategies

Category : Flashcards

Option Trading Strategies

Box Spread

  • Bull call spread and a bear put spread
  • Buy Call (K1)
  • Write Call (K2)
  • $K2>K1$
  • Buy Put (K4)
  • Write Put (K3)
  • $K4>K3$


  • Butterfly Spread Using Calls

  • Buy Call (K1)
  • Buy Call (K3)
  • 2 X Write Call (K2)
  • $K3>K2>K1$


  • Butterfly Spread Using Puts

  • Buy Put (K1)
  • Buy Put (K3)
  • 2 X Write Put (K2)
  • $K3>K2>K1$


  • Calendar Spread Using Calls

  • Buy Call (K) Earlier maturity
  • Write Call (K) Later maturity


  • Calendar Spread Using Puts

  • Buy Put (K) Earlier maturity
  • Write Put (K) Later maturity


  • A Straddle Combination

  • Buy Call (K)
  • Buy Put (K)


  • A Strip

  • Buy Call (K)
  • 2 X Buy Put (K)


  • A Strap

  • 2 X Buy Call (K)
  • Buy Put (K)


  • A Strangle Combination

  • Buy Call (K2)
  • Buy Put (K1)
  • $K2>K1$