Options Strategy Library

Generate income from stocks you already own. You sell usage rights (Call option) to someone else in exchange for cash now (Premium). Best used when you are neutral to slightly bullish.

The classic "Bull" bet. You pay a small premium for the right to buy the stock at a fixed price. Unlimited profit potential if the stock skyrockets, with risk limited only to the premium paid.

A "Credit" spread. You bet the stock will stay above a certain price. You sell a Put to collect money, and buy a lower Put as insurance. You want both to expire worthless.

The ultimate "Range" trade. You profit if the stock stays boring (between two prices). It combines a Bull Put Spread and a Bear Call Spread. High probability of profit, limited risk.

Insurance or a bet against the stock. You profit if the stock price crashes. Like shorting stock, but with limited risk (you can only lose what you paid for the option).

A "Credit" spread for bears. You bet the stock will stay below a certain price. You sell a Call to collect money, and buy a higher Call for protection. Time decay works in your favor.