Options Tutorial

 

Most Popular Option Strategies

Call Option - If bullish, buy call options to maximize leverage and minimize risk to the downside.

 

Buying Call Options

Call Option Profit, Loss & Breakeven

Downside of Buying Call Options

 

 

Put Option - Puts are a risk defined alternative to shorting stock, puts max leverage and minimize risk

 

Buying Put Options

Put Option Profit, Loss, & Breakeven

Downside of Buying Put Options

 

 

Bull Call Spread - A risk defined and reward defined alternative to buying call options.

 

Bull Call Spread

Bull Call Spread Profit, Loss, & Breakeven

Bull Call Spread vs Buying a Call

 

 

Bear Put Spread - A cheaper alternative to buying put options outright, however, defines max reward.

 

Bear Put Spread

Bear Put Spread Profit, Loss, & Breakeven

Bear Put Spread vs Buying a Put

 

Call Ratio Backspread

 

Bull Call Ratio Backspread

Bull Call Ratio Backspread Profit, Loss, & Breakeven

Bull Call Ratio Backspread vs Buying a Call

 

Put Ratio Backspread

 

Bear Put Ratio Backspread

Put Ratio Backspread Profit, Loss, & Breakeven

Put Ratio Backspread vs Buying a Put

 

At-the-Money (ATM) Options

In-the-Money (ITM) Options and

Out-the-Money (OTM) Options