Options strategies

A bull call spread buys a call and sells a higher-strike call with the same expiry — a defined-risk, defined-reward bet that the underlying rises moderately.

A covered call holds long stock and sells an out-of-the-money call against it — an income-enhancement strategy that collects premium in exchange for capping upside above the short strike.

A cash-secured put sells an out-of-the-money put while holding enough cash to buy the shares at the strike — an income strategy that either collects premium or acquires stock at a discount to the current price.

A bear put spread buys a put and sells a lower-strike put with the same expiry — a defined-risk, defined-reward position that profits when the underlying falls moderately.

A long straddle buys both an at-the-money call and an at-the-money put at the same strike and expiry — a bet on a large move in either direction, regardless of which way.

A long strangle buys an out-of-the-money call and an out-of-the-money put at different strikes with the same expiry — a cheaper alternative to the straddle that still profits from a large directional move.

An iron condor sells an out-of-the-money put spread and an out-of-the-money call spread — a defined-risk, range-bound income strategy that profits when the underlying stays between the short strikes.

An iron butterfly sells an at-the-money call and put (a short straddle) while buying a call and put further out — a defined-risk income strategy with a narrow but high-reward profit zone centered at the short strike.

A long calendar spread sells a near-term option and buys a later-expiry option at the same strike — a time-decay arbitrage that profits when the underlying stays near the strike while the short option decays faster than the long.