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Selecting A Strategy RETURN TO OPTIONS EDUCATION PAGE

There are many options strategies using various combinations of puts, calls, and futures that can be tailored to take advantage of a particular set of market expectations and circumstances. Ultimately, a trader's objectives, view of the market, and ability to carry risk will determine which strategy to use.

Options / Futures Strategies

Price Outlook Strategy Profit Risk>
Bullish Buy Futures Unlimited Unlimited
Bullish Buy Call Unlimited Limited
Neutral / Bearish Sell Call Limited Unlimited
Bearish Sell Futures Unlimited Unlimited
Bearish Buy Put Unlimited Limited
Neutral / Bearish Sell Put Limited Unlimited
Increase In Volatility Buy Straddle Unlimited Limited
Decrease In Volatility Sell Straddle Limited Unlimited