Option Strategies Reference and Trading Tips

All Option Strategies List A-Z

The following is a list of all option strategies, sorted alphabetically by name. Some strategies are known under multiple names, which are also listed. Or see option strategies by exposure: bullish, bearish, long volatility, non-directional. Or by number of legs: single leg, 2 legs, 3 legs, 4 legs. The List [more…]

Call, Put, Long, Short, Bull, Bear: Terminology of Option Positions

Terminology of option positions may be confusing. This page may help clarify it. Sometimes people have a long put position (they own puts) and they say they are short. They mean their exposure to the underlying price movement is similar to a short position in the stock (they expect to [more…]

Option Strategy Legs Explained

When talking about option strategies, you often hear the term “leg” or “legs”. This page explains what a leg means. It is very simple. A leg is a single component of an option strategy – typically an option with a particular strike and expiration. An option strategy can be composed [more…]

Long Call vs. Short Put Differences and When to Trade Which

This page explains differences between long call and short put option positions. Using an example, we will compare their cash flows and payoff profiles. We will conclude with recommendations when to trade which strategy. What Long Call and Short Put Have in Common Long call and short put are among [more…]

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