Unlocking Investment Fundamentals

• 

  18 Chapters | Duration:

  10Option Strategies

  Explore proven options strategies like spreads, straddles, condors & combos, and learn when to apply them based on market view, risk, and volatility outlook.

Course Objectives

• 

  Learn to pick the right strategy for each market.

• 

  Understand risk/reward of key option trades.

• 

  Master directional and non-directional setups.

• 

  Use spreads, combos & condors effectively.

• 

  Build trades based on volatility & events.

• Chapter - 1

  3 mins read

  Introduction to Option Strategies

  Options trading offers immense potential—but only if approached with the right mindset, tools, and techniques. This guide will help you build a strong foundation in option strategies by simplifying concepts and aligning them with practical use cases. Whether you're just starting or looking to strengthen your trading toolkit, this overview is tailored for you.

• Chapter - 2

  4 mins read

  Step-by-Step Guide to Choosing the Right Option Strategy

  Options trading, though lucrative, is full of complexities. Just like a skilled cricketer cannot rely on a single stroke to score runs, an options trader needs more than one strategy to navigate different market situations.

• Chapter - 3

  5 mins read

  Long Call Option: When To Create It, and Key Things to Remember

  The entry-level strategy for many traders is the long call strategy. Stories of how a friend, or someone they know, turned a small call option trade into a big profit are what often draw cash market traders into the world of options. The idea of winning big through option buying is what attracts retail participants more than the stock market itself.

• Chapter - 4

  4 mins read

  Short Call Option: What It Is and How to Create a Short Call Trade

  One of the four basic option strategies is a Short Call trade. A short call position is initiated when a trader anticipates that the price of the underlying asset will decline. It is a bearish strategy designed to profit from falling prices. However, it carries the risk of unlimited loss if the price moves against the trade.

• Chapter - 5

  4 mins read

  Long Put Option: What It Is and Factors to Consider Before Initiating It

  The go-to strategy for traders who expect the market to move downward is the Long Put. Just like a Long Call is suited for bullish views, a Long Put aligns with a bearish outlook. This strategy is also widely used by hedgers looking to protect their portfolios against downside risk.

• Chapter - 6

  4 mins read

  Short Put Option: What It Is and How to Trade It

  A Short Put position is a bullish options strategy, built on the belief that the price of the underlying asset will rise or stay steady. When a trader sells or "writes" a Put option, they receive a premium upfront, which represents their maximum potential profit from the trade.

• Chapter - 7

  4 mins read

  All about Synthetic Call, Synthetic Put and Long Combo

  Options trading offers unmatched flexibility, making it the preferred choice for many traders. In this chapter, we’ll explore how Call and Put options can be synthetically created using other instruments, and how a combination of these can lead to a bullish strategy called the Long Combo.

• Chapter - 8

  4 mins read

  Covered Call

  A Covered Call is a popular options strategy used by investors who already hold stocks in their portfolio. Instead of liquidating their holdings during flat or mildly bearish markets, they utilise the Covered Call approach to generate additional income from options without selling their equity holdings.

• Chapter - 9

  4 mins read

  Straddle Strategy in Options Trading

  In scenarios where market direction is uncertain, but a sharp move is anticipated, traders turn to non-directional strategies. Events such as national budgets, monetary policy announcements, major elections, or earnings results often bring this level of volatility and unpredictability.

• Chapter - 10

  3 mins read

  Strangle: A Comprehensive Guide for Options Traders

  Strangle is one of the most widely-used non-directional options strategies, especially favored by traders seeking to benefit from price volatility or time decay. Unlike a Straddle that uses At-the-Money (ATM) options, a Strangle is constructed

• Chapter - 11

  3 mins read

  Long and Short Iron Condor: All You Need to Know

  In the evolving landscape of Indian options trading, strategies like the Iron Condor are gaining momentum especially following the regulatory shifts in margin requirements. Unlike Straddle and Strangle, which are two-legged setups, the Iron Condor is a more complex four-legged strategy, offering delta-neutral exposure with limited risk and reward.

• Chapter - 12

  3 mins read

  Bull Call Spread and Bull Put Spread: Smart Bullish Option Strategies with Defined Risk

  In options trading, spread strategies are among the most widely used tools by proprietary desks and professional traders. These structured, two-legged trades form the foundation of many trading desks globally due to their simplicity and defined risk-reward characteristics.

• Chapter - 13

  2 mins read

  Bear Call Spread and Bear Put Spread

  A Bear Call Spread is created by selling a call option and buying another call option of the same underlying asset and expiration date but a higher strike price. Since the call option sold is costlier than the one that is bought, this spread becomes a credit spread.

• Chapter - 14

  5 mins read

  Butterfly Strategy

  Most widely used options trading strategies are neutral in nature, designed to benefit from markets that remain range bound. Interestingly, markets trend in either direction only about 30% of the time. The remaining 70% of the time, they tend to move sideways. One such strategy that thrives in a non-trending environment is the Butterfly Strategy.

• Chapter - 15

  5 mins read

  Ratio Spread Strategy

  Spreads are often considered the foundation of many multi-leg option strategies. They are relatively simple to construct and offer defined risk and reward, making them a practical tool for traders.

• Chapter - 16

  5 mins read

  Calendar and Double Calendar Spreads

  In this post, our focus will be on Calendar Spreads, a type of horizontal spread using options with identical strikes but different expiration dates. A quick note: There is also a futures-based version of the calendar spread strategy. This involves buying a cheaper future and shorting a costlier one of the same underlying, aiming to profit when the price difference narrows.

• Chapter - 17

  5 mins read

  Diagonal Spread and Double Diagonal Spread

  A Vertical Spread involves buying and selling options of the same expiry and same type (Call or Put), but at different strike prices. It’s called “vertical” because the strike prices are stacked vertically in the option chain.

• Chapter - 18

  4 mins read

  Adjusting Options Trades – A Practical Guide

  When trading in the cash or futures markets, your options post-entry are quite restricted. For instance, if you’ve purchased shares at ₹150 and the price rises to ₹170, you typically have two routes: book full or partial profits, or add more quantity if you expect the momentum to continue. This approach involves committing additional capital to chase further gains.