Strip Option Strategy
When to use: Strip Option Strategy is used when the investor is bearish on the stock and expects volatility in the near future. How it works: Strip option strategy use three option contracts of the same underlying stock, with the same expiry date and same strike prices. In this strategy, you buy 2 at-the-money put options and 1 at-the-money call option. For […]
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 […]
Bear Put Spread Option Strategy
by Rajat Sharma | October 12, 2020 The BSE PSU stocks index has massively underperformed the benchmark S&P BSE Sensex in the past five years. While the BSE Sensex has appreciated 49.4% (fr… 27079.51 to 40433.52), the BSE PSU Index has fallen 34.7% (from 6955.32 to 4535.22). The …
Bull Call Spread Option Strategy
When to use: Bull Call Spread Strategy is used when the investor believes that the stock will rise in future (i.e. the investor is bullish on the stock). How it works: In a Bull Call Spread Option you buy 1 in-the-money call option and sell 1 out-of-the-money call option of the same underlying stock with the same expiry date. In this strategy, you believe […]
Bull Put Spreads Option Strategy
When to use: Bull Put Spread strategy is used when the investor believes that the stock/index price will rise in future or at best it will trade in a tight range, i.e. the investor is bullish on the stock/index. How it works: In a Bull Put Spread strategy the investor sells one put options and buys another, […]
Bear Call Spread Option Strategy
When to use: Bear Call Spread Strategy is used when the investor believes that the stock price will fall in future or at best, it will remain range bound i.e. the investor is bearish on the stock. How it works: In a bear call spread option the investor buys 1 out-of-the-money call options and sells 1 in-the-money call options of the same underlying stock […]
Using Credit Card to Buy Shares?
The short answer to that is of course ‘No’. Someone posted this question to us and we thought it would make an interesting topic to write about. What if you could buy shares using your credit card, at least in the short term? You will actually be in a position to use your 45-50 day […]