Strategies

Covered Call

A covered call is when you own 100 shares of a stock, and you would like to earn money on it. So you sell a call option in a month’s time. You collect a premium. If the stock goes below the strike price, then the option expires worthless, and you keep the premium collected. but if the stock goes above, then u must sell the stocks and miss out on the gains, but u still get the premium, 5-10% otm

Cash secured Put

is when u have the cash aside and you sell a put at a price that youd be willing to buy 100 shares of the stock for ,and just collect the premium

Bullish credit Spread

It’s when you sell a put at a higher strike price and buy a put at a lower strike price, and it limits your profit and losses and profits from time decay. If the stock is above the short put, then you are profiting the most you can; if it’s between the two strike prices, then you are taking a partial loss or breaking even; if it’s under the long put, then you are in the max loss. Max profit is the credit - the cost for the long put, and max loss is the strike price diff - the profit potential. short time frame like a month is safe

Bearish Credit Spread

Bullish Debit Spread

Bearish Debit Spread

Iron Condor

Leap option

Iron Condor

Butterfly

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