Long Put Ladder Option Strategy
When to use: Long Put Ladder option strategy is used when the investor is moderately bearish on the stock and expects less volatility. This strategy is an extension of Bear Put Spread Strategy as in that the investor sells another lower strike put. By shorting another put at a lower strike price, the position assumes uncapped risk potential […]
Long Call Ladder Option Strategy
When to use: Long Call Ladder Option Strategy is used when the investor is moderately bullish on the stock and expects less volatility. This strategy is an extension of the Bull Call Spread Strategy. In this case, the investor sells an additional call option. How it works: In a long call ladder option strategy you buy 1 in-the-money call option; sell 1 at-the-money call option and […]
Short Call Condor Option Strategy
When to use: Short Call Condor Option Strategy is similar to a short call butterfly spread strategy. This Strategy is implemented when the investor believes that the stock is going to break out of a trading range in the near future but is not sure in which direction. How it works: Short call condor strategy uses four option contracts with […]
Long Call Condor Option Strategy
When to use: Long call condor option strategy is similar to a long call butterfly spread strategy. It is used when the investor believes that the stock is going to trade in a range and will be volatile in the near future. How it works: Long call condor option strategy uses four option contracts of the same underlying stock with the same […]