Strategies
59 strategies, in plain English — what each one is, when it fits, and what can go wrong. Three articles are fully migrated in this pilot (Sell Put, Bull Call Spread, Covered Call); the rest show the builder's own description, use and risk until content import.
Novice (6)
Long Call
Basic
Buy 1 at-the-money call. Profit grows with the stock above the breakeven.
Long Put
Basic
Buy 1 at-the-money put. Profit grows as the stock falls below the breakeven.
Covered Call
Income
Own 100 shares and sell 1 call about 5% above the price. Income from the premium, upside capped at the strike.
Cash-Secured Put
Income
Sell 1 put about 5% below the price. Keep the premium if the stock stays above the strike.
LEAPS Long Call
Basic
Buy 1 at-the-money call on the furthest available expiration. Long-dated upside with time on your side.
Protective Put
Other
Own 100 shares and buy a put about 5% below the price. Limits downside while keeping upside.
Intermediate (19)
Bull Call Spread
Debit Spreads
Buy an at-the-money call and sell a call about 5% higher. Defined risk and reward.
Bear Put Spread
Debit Spreads
Buy an at-the-money put and sell a put about 5% lower. Defined risk and reward.
Straddle
Volatility
Buy an at-the-money call and put on the same expiry. Profits from a big move either way.
Strangle
Volatility
Buy a call about 5% above and a put about 5% below the price. Cheaper than a straddle, needs a bigger move.
Iron Condor
Neutral
Sell a put spread below and a call spread above the price. Profits if the stock stays in range.
Bull Put Spread
Credit Spreads
Sell an at-the-money put and buy a put about 5% lower. Credit spread that profits if the stock stays above the short strike.
Bear Call Spread
Credit Spreads
Sell an at-the-money call and buy a call about 5% higher. Credit spread that profits if the stock stays below the short strike.
Iron Butterfly
Neutral
Sell an at-the-money straddle and buy out-of-the-money wings. Profits most if the stock pins near the middle strike.
Long Put Butterfly
Neutral
Buy a put butterfly: long wings, short two at-the-money puts. Limited risk, profits if the stock lands near the middle strike.
Long Call Butterfly
Neutral
Buy a call butterfly: long wings, short two at-the-money calls. Limited risk, profits if the stock lands near the middle strike.
Calendar Call Spread
Calendar Spreads
Sell a near-term at-the-money call and buy the same strike further out. Profits from time decay and a calm stock.
Calendar Put Spread
Calendar Spreads
Sell a near-term at-the-money put and buy the same strike further out. Profits from time decay and a calm stock.
Diagonal Call Spread
Calendar Spreads
Sell a near-term out-of-the-money call and buy a longer-dated at-the-money call. A bullish calendar with a directional tilt.
Diagonal Put Spread
Calendar Spreads
Sell a near-term out-of-the-money put and buy a longer-dated at-the-money put. A bearish calendar with a directional tilt.
Inverse Iron Butterfly
Volatility
Buy an at-the-money straddle and sell out-of-the-money wings. Profits from a big move either way.
Inverse Iron Condor
Volatility
Buy the inner put and call spreads and sell the outer wings. Profits from a big move outside the range.
Short Put Butterfly
Volatility
Sell a put butterfly: short wings, long two at-the-money puts. Collects premium if the stock moves away from the middle strike.
Short Call Butterfly
Volatility
Sell a call butterfly: short wings, long two at-the-money calls. Collects premium if the stock moves away from the middle strike.
Collar
Other
Own 100 shares, buy a protective put and sell a call to fund it. Caps both downside and upside.
Advanced (22)
Short Put
Naked
Sell a put about 5% below the price. Keep the premium if the stock stays above the strike.
Short Call
Naked
Sell a call about 5% above the price. Keep the premium if the stock stays below the strike.
Short Straddle
Neutral
Sell an at-the-money call and put. Collects premium if the stock stays quiet; risk grows with a big move.
Short Strangle
Neutral
Sell an out-of-the-money call and put. Wider break-evens than a short straddle, same quiet-market thesis.
Long Call Condor
Neutral
Buy a call condor: long outer wings, short two inner calls. Limited risk, profits in a range around the middle.
Long Put Condor
Neutral
Buy a put condor: long outer wings, short two inner puts. Limited risk, profits in a range around the middle.
Call Ratio Backspread
Ratio Spreads
Sell one at-the-money call and buy two higher calls. Limited loss if the stock falls, growing profit on a strong rally.
Put Broken Wing
Ratio Spreads
Broken-wing put butterfly with a skipped lower strike: long wing, short two middle puts, long far wing. Asymmetric risk profile.
Inverse Call Broken Wing
Ratio Spreads
Mirror of the call broken wing: short wing, long two middle calls, short far wing. Collects premium with skewed risk.
Put Ratio Backspread
Ratio Spreads
Sell one at-the-money put and buy two lower puts. Limited loss if the stock rises, growing profit on a sharp fall.
Call Broken Wing
Ratio Spreads
Broken-wing call butterfly with a skipped upper strike: long wing, short two middle calls, long far wing. Asymmetric risk profile.
Inverse Put Broken Wing
Ratio Spreads
Mirror of the put broken wing: short wing, long two middle puts, short far wing. Collects premium with skewed risk.
Covered Short Straddle
Income
Own 100 shares and sell an at-the-money straddle against them. Double premium; the stock leg cushions downside.
Covered Short Strangle
Income
Own 100 shares and sell an out-of-the-money strangle against them. Double premium with wider break-evens.
Short Call Condor
Volatility
Sell a call condor: short outer wings, long two inner calls. Collects premium if the stock moves away from the middle.
Short Put Condor
Volatility
Sell a put condor: short outer wings, long two inner puts. Collects premium if the stock moves away from the middle.
Bull Call Ladder
Ladders
Buy a call and sell two higher calls. A three-leg ladder that profits modestly up to the middle strike.
Bear Call Ladder
Ladders
Sell a call and buy two higher calls. A three-leg ladder positioned for a strong rally or a sharp reversal.
Bull Put Ladder
Ladders
Buy a put and sell two lower puts. A three-leg ladder that profits modestly down to the middle strike.
Bear Put Ladder
Ladders
Sell a put and buy two lower puts. A three-leg ladder positioned for a sharp fall or a strong bounce.
Jade Lizard
Other
Sell an out-of-the-money put and a call spread. No upside risk when the credit covers the call spread width; downside risk below the put strike.
Reverse Jade Lizard
Other
Sell a put spread and a call. Mirror of the Jade Lizard: downside loss capped at the put spread width, upside risk open.
Expert (12)
Short Guts
Other
Sell an in-the-money call and an in-the-money put. A short strangle with in-the-money strikes; wide premium, two-sided risk.
Double Diagonal
Other
A call diagonal plus a put diagonal. Profits if the stock stays in range while longer-dated wings hold value.
Call Ratio Spread
Ratio Spreads
Buy one at-the-money call and sell two higher calls. A ratio spread: capped upside beyond the short strikes, naked tail risk above them.
Put Ratio Spread
Ratio Spreads
Buy one at-the-money put and sell two lower puts. A ratio spread: capped downside profit beyond the short strikes, naked tail risk below them.
Long Synthetic Future
Synthetic
Buy a call and sell a put at the same strike. Mirrors owning the stock without holding shares.
Short Synthetic Future
Synthetic
Sell a call and buy a put at the same strike. Mirrors shorting the stock without borrowing shares.
Synthetic Put
Synthetic
Short 100 shares and buy an at-the-money call. Mirrors owning a put: downside profit with upside capped at the call strike.
Long Combo
Risk Reversal
Buy an out-of-the-money call and sell an out-of-the-money put. A bullish risk reversal: upside participation funded by the put premium.
Short Combo
Risk Reversal
Sell an out-of-the-money call and buy an out-of-the-money put. A bearish risk reversal: downside participation funded by the call premium.
Strip
Other
Buy one at-the-money call and two at-the-money puts. A straddle tilted bearish: bigger payoff on a fall.
Strap
Other
Buy two at-the-money calls and one at-the-money put. A straddle tilted bullish: bigger payoff on a rally.
Guts
Other
Buy an in-the-money call and an in-the-money put. A strangle with in-the-money strikes: higher premium, needs a smaller move to profit.