Strangles
Long Strangle In a long strangle, the trader buys a call and put of different strikes, the same expiration and the same underlying product. You may note the similarity to a…
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Practical Strategies
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Straddles
The straddle is a common options strategy and volatility trading strategy. It is used when you anticipate a significant move in the underlying futures market but are uncertain about the…
Calendar Spread
Trading Option Calendar Spreads Being long a calendar spread consists of a selling an option in a near-term expiration month and buying an option in a longer-term expiration month. The options…
Collars
A collar spread consists of a long futures contract, a short call and a long put. The call and put are different strikes. But have the same expiration and the same underlying…
Bear Spread
A bear spread consists of a buy leg and a sell leg of different strikes for the same expiration and same underlying contract. This strategy will pay off in a…