Most option strategies are are centered around making the right call on the direction of a stock. This approach relies on the accuracy of guessing the direction of the stock. Thus the chances of profiting are low. By using a combination of Bull and Bear Credit Spread, an Iron Condor position can be created. It [...]

The bear call spread strategy is used when we thinks that the price of underlying asset will go down moderately in near term. If you think the price will go down a lot, I suggest don’t use this strategy. There are better strategy for that condition. It is implemented by selling an in-the-money (ITM) call [...]

The bull put spread strategy is used when we thinks that the price of underlying asset will go up moderately in near term. If you think the price will rise a lot, I suggest don’t use this strategy. There are better strategy for that condition. It is implemented by selling an in-the-money (ITM) put option [...]

Using an option spread involves combining two different option. There are various kind of spread:
-Vertical spread, buy and sell option with different strike price, same expiration date
-Horizontal spread, buy and sell option with same strike price, but different expiration date
-Diagonal spread, buy and sell option with different strike price, and different expiration date
With vertical spread, [...]

The Covered Call is the most basic of income strategies, but it is very effective and can also be used by experts. From the name we knew that it use the call option which is protected by something. This strategy is an income strategy, so we first sell the call option. This way we can [...]

With income strategy we can generate profit on regular basis, buy combining buy or sell. This strategy is done by selling option either by selling calls or selling puts, and buying another option to protect the other option. This strategy is usually short-term strategy. The longer the time, the riskier it is. When we are [...]