There are only four possible option strategies which involve only one leg (a single option) – a long position or a short position in each of the two option types (call and put):
- Long Call
- Long Put
- Short Call (also Naked Call, Uncovered Call)
- Short Put (also Naked Put, Uncovered Put)
- Synthetic Covered Call
- Synthetic Covered Put
See also list of option strategies with two, three, and four legs.
Long Call
![long call option strategy](/images/option-strategies/long-call/long-call-option-strategy.png)
Long call is a bullish option strategy – there is theoretically unlimited profit when the underlying asset goes up and limited risk when it goes down (maximum loss equals initial premium paid).
Long Put
![long put option strategy](/images/option-strategies/long-put/long-put-option-strategy.png)
Long put is a bearish option strategy – it profits when underlying price goes down. Like long call, it has limited loss (equal to premium paid) and almost unlimited profit (when the underlying falls to zero).
Short Call
![short call option strategy](/images/option-strategies/short-call/short-call-option-strategy.png)
Short call is the opposite position to long call. Its payoff diagram is exactly inverse. It is the riskiest of all the four single leg strategies – it can lose theoretically unlimited amount if underlying price goes up.
Short Put
![short put option strategy](/images/option-strategies/short-put/short-put-option-strategy.png)
Short put is inverse to long put. In the ideal case, it gains the option premium received in the beginning (if underlying price stays above the strike). It can lose a lot if the underlying falls, but unlike short call, maximum theoretical loss is limited at zero underlying price.