Stock Option Strategies

When the markets are trading sideways or in a very narrow range, there are certain strategies classified as 'non-directional' that are utilized in order to maximize gain and minimize losses. These strategies are:

The Dual Credit Spread

The Strangle Swaps

The Bondor

The Neutral Option Position

The Ratio Spread

The Calendar Spread

Using The Directional Option Strategies

When the markets are trending either in a bullish or bearish direction, there are certain strategies classified as 'directional' that are utilized in order to maximize gain and minimize losses. These strategies are:

The Butterfly and Condor

The Diagonal Time Spread

The Ratio Backspread

The Free Option Position

The Option Straddle and Strangle Positions

The Vertical Debit Spread