Category: Neutral Option Strategies

Short Strangle is a strategy to be used when the investor is Neutral on the market direction and bearish on volatility expecting markets to trade in a narrow range. This strategy involves selling an “Out-of-the-Money Call Option” and selling an…

Long Strangle is a strategy to be used when the investor is Neutral on the market direction and bullish on volatility. This strategy involves buying an “Out-of-the-Money Call Option” and buying an “Out-of-the-Money Put Option”. Both options must have the…

Investors must use “Call Backspread” strategy when they are bullish on market direction as well as volatility. It works well if the investor is bullish as well as bearish on the market with a bias to the upside. This strategy…

Sell or Short Straddle is the opposite of Buy Straddle. It is used when the investor is expecting underlying to show no large movement. Investor expects the underlying to show little volatility Upside or Downside. This strategy involves Selling a…

Buy or Long Straddle is considered as a non-directional strategy and is used when the underlying is expected to show large movements in either direction i.e. Upside or Downside. This strategy involves Buying a Call as well as Put on…