Buying Strategies — Option

These strategies profit when you expect a big move but are unsure of the direction.

: Used when you are bearish . You buy a put option expecting the stock price to fall significantly. option buying strategies

: Buy a lower-strike call and sell a higher-strike call. This reduces the net premium paid and lowers the break-even point. These strategies profit when you expect a big

Spreads help manage risk by simultaneously selling another option to offset the cost of the one you bought. : Buy a lower-strike call and sell a higher-strike call

: Combines a long stock position with a long put option to create a "floor" for potential losses. It acts as an insurance policy for your existing holdings. 2. Volatility Strategies (Non-Directional)

: You buy an at-the-money (ATM) call and put with the same strike and expiry. It is most effective before major events like earnings or rate cuts.