Category: Neutral Option Strategies

Short Put Ladder is a strategy that must be devised when the investor is neutral to bearish on the market direction and expects volatility to be significant in the market. A Short Put Ladder strategy is formed by selling “In-the-Money”…

Short Call Condor is a strategy that must be devised when the investor is neutral on the market direction and expects markets to break out of a trading range, but is not sure in which direction. A Short Call Condor…

Long Call Condor is a strategy that must be devised when the investor is neutral on the market direction and expects volatility to be less in the market. A Long Call Condor strategy is formed by buying Out-of-the-Money Call Option…

Short Call Butterfly is a strategy that must be devised when the investor is neutral on the market direction and expects volatility to be significant in the market. A Short Call Butterfly strategy is formed by buying two “At-the-Money Call”…

Long Call Butterfly is a strategy that must be devised when the investor is neutral on the market direction and expects volatility to be less in the market. A Long Call Butterfly strategy is formed by selling two At-the-Money Call…

Short Call Ladder is a strategy that must be devised when the investor is moderately bullish on the market direction and expects volatility to be significant in the market. A Short Call Ladder strategy is formed by selling “In-the-Money” Call…

Long Put Ladder is a strategy that must be devised when the investor is moderately bearish on the market direction and expects volatility to be less in the market. A Long Put Ladder strategy is formed by buying “In-the-Money Put…

Long Call Ladder is a strategy that must be devised when the investor is moderately bullish on the market direction and expects volatility to be less in the market. A Long Call Ladder strategy is formed by buying “In-the-Money Call…

Investors must use Strip strategy when they are bullish on volatility and bearish on market direction. This strategy involves buying two lots of “At-the-Money Put Option” and buying an “At-the-Money Call Option”. Both Options must have the same underlying security…

Investors must use Strap strategy when they are bullish on volatility and bullish on market direction going upwards. This strategy involves buying two lots of “At-the-Money Call Option” and buying an “At-the-Money Put Option”. Both options must have the same…