Call Ratio Spread Explained

Call Ratio Spread is a premium neutral strategy that involves buying options at lower strikes and selling higher number of options at higher strikes of the same underlying stock. Read more on 5Paisa Blog

Option Buyer v/s Option Writer

?An Option Buyer is someone who buys an option from sellers/ writer. The buyer of an option pays a premium and buys the right of that particular option but is not obliged to writer to exercise the option.

Understating Options and Its Types?

An Option contract is a type of derivative instrument, which gives holder the right to buy an asset but not the obligation to purchase at a fixed price (strike price) for a specific timeframe.

Long Call Ladder Options Strategy

The purpose of selling the additional strike is to reduce the cost. It is limited profit and unlimited risk strategy.

Long Call Calendar Spread

A Long Call Calendar Spread is implemented by selling near month at-the-money/out-the-money call option and simultaneously buying far month at-the-money/out-the-money call option of the same underlying assets.

Short Call Condor Options Trading Strategy

A Short Call Condor is implemented when the investor is expecting movement outside the range of the highest and lowest strike price of the underlying assets.

Long Call Condor Options Trading Strategy

The ITM and OTM call strikes should be equidistant.

Short Iron Butterfly Options Strategy

A Short Iron Butterfly strategy is implemented when an investor is expecting very little or no movement in the underlying assets.

Long Iron Butterfly Options Strategy

A Long Iron Butterfly is implemented when an investor is expecting volatility in the underlying assets.

How to make Profit in a Volatile Market at low cost - Long Strangle Option Strategy

A Long Strangle is a slight modification of the Long Straddle strategy and also cheaper to execute as both the calls and puts are Out-the-Money.