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Stocks Options Trading Strategies
Some of our favourite Bullish Strategies:
| (a) Long Call |
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(b) Covered Call |
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Trade example:
Buy 10 MSFT JUN 55 Calls for $2.50.
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Trade example:
Buy 100 DIS @ $24.40 $2,440
Sell 1 OCT 27.5 call @ $0.90 ($90) Cost of Trade $2,350
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| (c) Bull Call Spread |
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(d) Bull Put Spread |
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Trade example:
Buy 1 DELL JUL 25 Call @ $2.95 $295
Sell 1 DELL JUL 30 Call @ $0.50 ($50) Cost of Trade $245
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Trade example:
Sell 10 KO AUG 55 Put @ $2.55 $2,550)
Buy 10 KO AUG 50 Put @ $0.85 $850
Credit from Trade ($1700)
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Some of our favourite Bearish Strategies:
| (a) Long Put |
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(b) Bear Call Spread |
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Trade example:
Buy 10 MSFT JUN 55 Put for $2.50.
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Trade example:
Buy 10 JUL 32 Calls @ $1.00 $1,000
Sell 10 JUL 30 Calls @ $1.85 ($1,850)
Credit from Trade ($850) 0.
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| (c) Bear Put Spread |
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(d) Bear Naked Call |
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Trade example:
Buy 10 JUL 60 Put @ $4.00 $4,000
Sell 10 JUL 55 Put @ $1.00 ($1,000)
Cost of Trade $3,000
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Trade example:
Sell Jun 90 Call @ $1.35 ($135 )
Credit from Trade ($135)
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Some of our favourite
Neutral Strategies:
| (a) Straddle |
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(b) The Condor |
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Trade example:
Buy 1 80 Call @ $7.50 $750
Buy 1 80 Put @ $7.00 $700
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Trade example:
Sell 1 75 Call @ $6.00 ($600) (body)
Sell 1 80 Call@ $4.00 ($400) (body)
Buy 1 70 Call @ $9.00 $900 (wing)
Buy 1 85 Call @ $2.00 $200 (wing)
Cost of Trade $100 ($1,100-$1,000)
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