future trading strategy

Jun 28th, 2015
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Academy of Art University
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Options are used in combination to benefit from unpredictable movement in the prices of underlying assets. Certain combinations which are called option strategies are listed below. STRADDLE: Buy/Sell call & put having same expiry at same strike price near So. STRANGLE: Buy/Sell call at higher X & Buy/Sell put at lower X having same expiry. STRAP: Long on 2 calls & 1 put having same expiry near So. STRIP: Long on 1 call & 2 puts having same expiry near So.

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WELCOMETO THE PRESENTATIONONOPTION STRATEGIES.TRADING STRATEGIES OFOPTIONS.Options are used in combination to benefit fromunpredictable movement in the prices ofunderlying assets. Certain combinations which arecalled option strategies are listed below.STRADDLE: Buy/Sell call & put having sameexpiry at same strike price near So.STRANGLE: Buy/Sell call at higher X & Buy/Sellput at lower X having same expiry.STRAP: Long on 2 calls & 1 put having sameexpiry near So.STRIP: Long on 1 call & 2 puts having same expirynear So.2BULLISH VERTICLE SPREAD: Buy an option withlower X & sell that option with higher X havingsame expiry.BEARISH VERTICLE SPREAD: Buy an option withhigher X & sell that option with lower X.BOX SPREAD: It is a combination of bull & bearspreads with calls & puts respectively with thesame set of X. It involves Buying call at lower X,selling call at higher X, buying put at higher X andselling put at lower X.TIME SPREAD: Buy/Sell long term option &sell/buy short term option having same X near So.3BUTTERFLY SPREAD: Buy/Sell one option each attwo extreme X & sell/buy two of the same option atintermediate X having same expiry.CONDOR SPREAD: Buy/Sell one option each attwo extreme prices & sell/buy the same option attwo intermediate X.PROTECTIVE PUT: Buy put along with buyingstock to hedge for down side risk in buying stock.COVERED CALL WRITING: Buy stock & sell call.4LONG BUTTERFLY SPREAD:Buy one option each at two extreme

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