23 December

Bear Call Spread

Bear call spread is an option strategy used by traders to cap their maximum loss. At first, a trader is bearish with the downside capped, so he initiates a sell …

21 December

Bull Put Spread

Bull put spread is an option strategy used by traders to cap their maximum loss. At first, a trader is bullish with the upside capped, so he initiates an ITM …

27 December

Option Greeks

The Greeks measure different dimension to the risk in an option position and the aim of the trader is to manage the Greeks so that all risks are acceptable. Or …

27 December

Short Strangle

A Short Strangle is a slight modification to the Short Straddle. This strategy involves the simultaneous selling of a slightly out-of-the-money (OTM) put and a slightly out-of-the-money (OTM) call of …

27 December

Long Strangle

A Strangle is a slightly modified version of the Straddle. In a straddle, we buy At-the-Money options to ride the profits immediately. But At-the-money options are a bit costlier to …

27 December

Bear Put Spread

A Bear Put Spread is a directional strategy and is used when bearishness is expected in the stock/index chosen. At the same time the trader is sure that although bearishness …