How many options strategies should you realistically master?

Discussion in 'Options' started by turkeyneck, Apr 26, 2023.

  1. There is a phone book's worth of strategies listed in McMillan's but these are the bread and butter strategies I use regularly as I like to keep things simple and most important of all profitable.
    • CC / short put
    • debit / credit spread
    • long / short straddles
     
  2. Robert Morse

    Robert Morse Sponsor

    Good morning turkeyneck, interesting member name. IMO, you need to have a detail knowledge of the risks of trading options. Then, you need to have an opinion on the direction or lack there of, of the security in question. After you have done that analysis and have an opinion that you have high expectations on, you look at the current option pricing. Then, and only then, should you evaluate the rick reward of the naked stock positions, hedged or not with options or just options to best give you the highest dollar expectations for your given risk. You can do any formal spread or make one up. Not what you wanted to hear, but I believe that those that look to do option spreads with no opinion on the stock or index, seem to find things to do with little true expectation of profit.
     
    Adam777, spy, BlueWaterSailor and 2 others like this.
  3. TheDawn

    TheDawn

    short put is not the same as CC. It's not covered. And I would also add butterflies and iron condors and calendar spreads to the list. They are quite useful as well.
     
  4. newwurldmn

    newwurldmn

    Whats the difference between a short put and a covered call?































    INFINITE GAMMA
     
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  5. newwurldmn

    newwurldmn

    You are confusing structures with strategies.
     
  6. mervyn

    mervyn

    nothing fancy, cc and short puts, I like collecting premium. then there are calendar spreads I buy in large volumes.
     
  7. I mean cash secured short put.
     
    spy likes this.
  8. 2rosy

    2rosy

    It's easier if you take a step back and understand how a long/short put or call or underlying behave. From that you can build up anything.
     
    Zwaen likes this.
  9. taowave

    taowave

    Dawn,Dawn,Dawn,you just cant leave well enough alone



     
  10. taowave

    taowave

    Are you directional?

     
    #10     Apr 26, 2023