Implied Volatility Increase

Bear Put Spread

A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.

Bull Call Spread (Debit Call Spread)

This strategy consists of buying one call option and selling another at a higher strike price to help pay the cost.

Cash-Backed Call (Cash-Secured Call)

This strategy allows an investor to purchase stock at the lower of strike price or market price during the life of the option.

Long Call

This strategy profits if the underlying stock is at the body of the butterfly at expiration.

Long Call Calendar Spread (Call Horizontal)

This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.

Long Condor

This strategy profits if the underlying stock is outside the outer wings at expiration.

Long Iron Butterfly

This strategy profits if the underlying stock is outside the wings of the iron butterfly at expiration.

Long Put

This strategy consists of buying puts as a means to profit if the stock price moves lower.

Long Put Calendar Spread (Put Horizontal)

This strategy combines a longer-term bearish outlook with a near-term neutral/bullish outlook.

Long Ratio Call Spread

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the upside potential is unlimited.

Long Ratio Put Spread

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the downside potential is substantial.

Long Straddle

This strategy consists of buying a call option and a put option with the same strike price and expiration.

Long Strangle (Long Combination)

This strategy profits if the stock price moves sharply in either direction during the life of the option.

Protective Put (Married Put)

This strategy consists of adding a long put position to a long stock position.

Synthetic Long Put

This strategy combines a long call and a short stock position.