A bear call spread is a limited-risk, limited-reward strategy, consisting of one short call option and one long call option.
A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.
This strategy is the combination of a bear call spread and a bear put spread.
This strategy consists of buying one call option and selling another at a higher strike price to help pay the cost.
A bull put spread is a limited-risk, limited-reward strategy, consisting of a short put option and a long put option with a lower strike.
This strategy is the combination of a bull call spread and a bull put spread.
This strategy allows an investor to purchase stock at the lower of strike price or market price during the life of the option.
The cash-secured put involves writing a put option and simultaneously setting aside the cash to buy the stock if assigned.
The investor adds a collar to an existing long stock position as a temporary, slightly less-than-complete hedge against the effects of a possible near-term decline.
This strategy consists of writing an uncovered call option.
A naked put involves writing a put option without the reserved cash on hand to purchase the underlying stock.
This strategy consists of adding a long put position to a long stock position.