Option Strategies with Positive Delta
This is a list of option strategies which have positive delta (they generally profit when underlying price goes up): See also option strategies with negative delta and delta neutral option strategies. [more ...]
Option Strategies with Negative Delta
This is a list of option strategies which have negative delta (they generally profit when underlying price goes down): See also option strategies with positive delta and delta neutral strategies. [more ...]
Delta Neutral Option Strategies
This is a list of delta neutral option strategies: Delta neutral means that total delta of the combined position is approximately zero. Delta is one of option Greeks and measures how the value of an option (or combination of options) changes when underlying price moves. Positive delta means the option strategy profits when underlying price rises (and loses when underlying price falls), while negative [more ...]
Option Strategies with Positive Gamma
This is a list of option strategies which have positive gamma: See also option strategies with negative gamma and gamma neutral option strategies. **Which Strategies Have Positive Gamma.** Generally, option strategies have positive gamma if they are net long options overall (long more contracts than short) or if they are net long at-the-money strikes (because gamma is highest at the money for both [more ...]
Option Strategies with Negative Gamma
The following are option strategies which have negative gamma: See also option strategies with positive gamma and gamma neutral option strategies. **Which Strategies Have Negative Gamma.** Because all options have positive gamma and the highest gamma is at the money, strategies with negative gamma tend to be those which are net short options (short more contracts than long), or those which are net [more ...]
Gamma Neutral Option Strategies
This is a list of gamma neutral option strategies: Gamma neutral means that total gamma of the combined position is approximately zero. Positive gamma means that the position's delta increases as underlying price goes up (so profits accelerate and losses slow down). Negative gamma means the opposite: Delta goes down as underlying price rises, which results in accelerating losses and decelerating profits. [more ...]
Option Strategies with Positive Theta
This is a list of option strategies which have positive theta (they gain with passing time): See also option strategies with negative theta and theta neutral option strategies. [more ...]
Option Strategies with Negative Theta
This is a list of option strategies which have negative theta (they lose with passing time): See also option strategies with positive theta and theta neutral option strategies. [more ...]
Theta Neutral Option Strategies
The following are theta neutral option strategies: Theta neutral means that total theta is near zero and the position neither gains nor loses with passing time. See also option strategies with positive theta (which profit from passing time) and option strategies with negative theta (which lose as time passes, other factors being constant). [more ...]
Option Strategies with Positive Vega
This is a list of option strategies which have positive vega (they profit as implied volatility rises): See also option strategies with negative vega and vega neutral option strategies. **Positive Vega vs. Theta and Gamma.** You may notice that most of the strategies on this list also have negative theta (they lose with passing time) and positive gamma (their profits accelerate and losses slow down [more ...]
Option Strategies with Negative Vega
The following is a list of option strategies with negative vega: See also option strategies with positive vega and vega neutral option strategies. Vega is one of option Greeks, which measures how the value of an option (or a combination of options) changes when implied volatility increases. Positive vega means that the position gains value with rising volatility, while negative vega means it loses [more ...]
Vega Neutral Option Strategies
The following is a list of vega neutral option strategies: See also option strategies with positive vega and option strategies with negative vega. Vega is one of option Greeks, which measures how much an option's value increases as implied volatility rises. Positive vega means a positive exposure to volatility, while negative vega means that the position loses as volatility increases. Vega neutrality [more ...]