Strategies

Overview History repeats itself! This type of approach of trading is classified as Technical Analysis where an analyst uses historical...

Overview Fundamental analysis is based on the idea that the market cannot be depended upon to accurately price a stock....

Overview For aggressive investors who are bullish about a stock/index’s prospects, buying calls can be an excellent way to capture...

Overview When you buy a Call you are hoping that the underlying stock/index would rise. When you expect the underlying...

Overview of a Synthetic Long Call Strategy In a synthetic long call strategy, investors and traders purchase a stock because we...

Overview Buying  a Put is the opposite of buying a Call. When you buy a Call, you are bullish about...

Overview Selling a Put is opposite of buying a Put. An investor buys Put when he is bearish on a...

Overview of a Covered Call Strategy Let’s consider that you are an investor. We will go over a Covered Call...

Overview A Long Combo is a Bullish strategy. If an investor is expecting the price of a stock to move...

Overview of Protective Call or Synthetic Long Put A Protective call or synthetic long put is a strategy where an investor...

Overview This strategy is opposite to a Covered Call Strategy. A Covered Call is a neutral to bullish strategy, whereas...

Overview of a Long Straddle Strategy A straddle is a volatility strategy. It is used when the stock price/index is...

Overview A Short Straddle is the opposite of Long Straddle. It is a strategy to be adopted when the investor...

Overview A strangle is a slight modification to the Straddle to make it cheaper to execute. This strategy involves simultaneous...

Overview of a Short Strangle Strategy A Short Strangle is a slight modification to the Short Straddle. It tries to...

Overview A collar is similar to Covered Call but involves another leg—buying a Put to insure against the fall in...

Overview Buy Call Option, Sell Call Option A bull call spread is constructed by buying an in-the-money (ITM) call option,...

Overview A Bull Put Spread Strategy can be profitable when the stock/index is either range bound or rising. The concept...

Bear Call Spread Option Strategy The Bear Call Spread strategy can be adopted when the investor feels that the stock/index...

Overview This strategy requires the investor to buy an in-the-money (higher) put option and sell an out-of-the-money (lower) put option...

Overview A Long Call Butterfly is to be adopted when the investor is expecting very little movement in the stock...

Overview A Short Call Condor is very similar to a short butterfly strategy. The difference is that the two middle...

Overview A Long Call Condor is very similar to a long butterfly strategy. The difference is that the two middle...

Overview A Short Call Butterfly is a strategy for volatile markets. It is the opposite of Long Call Butterfly, which...

Many a time, traders come across the term “risk-free trading”. Although in reality it is virtually impossible to trade a...