OPTION STRATEGIES IN TRADING SHAILESH SHINDE (M) 9870381515 Email : taxcalling@gmail.

com

S.NO. PARTICULARS Expectations Position Option Buyer Break Even

Risk Reward
1 Strategy - 1 :- Long Call Bullish - market goes up Buy call Option Premium Unlimited Strike Price + Premium

2 Strategy - 2 :- Short Call Bearish - market goes down Sell Call Option Unlimited Premium Strike Price + Premium
Strategy - 3 :- Synthetic Stock Price + Put
Buy Stock + Buy Put Put Strike Price + Put Premium + Stock
3 Long Call / Conservatively Bullish Premium - Strike Unlimited
Option Price - Put Strike Price
Protective Call Price

4 Strategy - 4 :- Long Put Buy Put Option Premium Unlimited Strike Price - Premium
Bearish - market goes down
5 Strategy - 5 :- Short Put Bullish - market goes up Sell Put Option Unlimited Premium Strike Price - premium
(Call Strike Price -
Short term neutral to Buy Stock + Sell Call Stock Price - Call
6 Strategy - 6 :- Covered Call Stock Price) + Stock Price - Premium
moderately bullish Option Premium
Premium Paid
Sell Put Option + Buy
7 Strategy - 7 :- Long Combo Bullish on stock Unlimited Unlimited Higher Strike Price + Net Debit
Call Option
Call Strike Price -
Strategy - 8 :- Synthetic Short Stock + Buy Call Stock Price -
8 Conservatively Bearish Stock Price + Stock Price - Call Premium
Long Put / Protective Put Option Premium
Premium

Short Stock + Short Put (Stock Price - Strike

9 Strategy - 9 :- Covered Put Neutral to Bearish Unlimited Stock Price + Put Premium
Option Price) + Put Premium

Strategy - 10 :- Long short term significantly Buy Put Option + Upper Break Even = Strike Price + Premium Lower
10 Premium Unlimited Break Even = strike Price - Premium
Straddle volatile Buy Call Option
Strategy - 11 :- Short Sell Put Option + Upper Break Even = Strike Price + Premium Lower
11 Very Little Volatility Unlimited Premium Break Even = strike Price - Premium
Straddle Sell Call Option
Strategy - 12:- Long Buy OTM Put + Buy Upper Break Even = Strike Price + Premium Lower
12 Very High Level of Volatility Premium Unlimited Break Even = strike Price - Premium
Strangle OTM Call
Strategy - 13 :- Short Sell OTM Put + Sell Upper Break Even = Strike Price + Premium Lower
13 Very Little Volatility Unlimited Premium Break Even = strike Price - Premium
Strangle OTM Call
S.NO. PARTICULARS Expectations Position Option Buyer Break Even
Risk Reward
Buy Stock + Buy Put + Stock Price - Call Premium + Put
14 Strategy - 14 :- Collar Conseratively Bullish Limited Limited
Sell Call Premium
Unlimited if stock Strike Price of OTM -
Strategy - 15 :- Bull Call Spread Buy ITM Call + Sell Strke Price of call Purchased + Net Debit
15 Strategy
Moderately bullish price falls below Strike Price of ITM -
OTM Call Paid
lower strike price net Debit
Unlimited if stock Strike Price of ITM -
Strategy - 16 :- Bull Put Spread Sell ITM Put + Buy
16 Strategy
Moderately bearish price falls below Strike Price of OTM - Strke Price of short Put - Net Premium
OTM Put
lower strike price net Debit
Strike Price of OTM -
Strategy - 17 :- Bear Call Spread Sell ITM Call + Buy Net Premium
17 Strategy
mildly bearish Strike Price of ITM - Lower Strike +Net credit
OTM Call received
net Debit
Strike Price of OTM -
Strategy - 18 :- Bear Put Spread Buy ITM Put + Sell
18 Strategy
mildly bearish Net Premium paid Strike Price of ITM - Strke Price of Long Put - Net Premium
OTM Put
net Debit
Sell 2 ATM call + Buy 1
Strategy - 19 :- Long Call Neutral on Mkt direction and Diff between 2 Upper Break Even = Strike Price(H) - Net Premium
19 ITM Call + buy 1 OTM Net Premium paid
Butterfly bearish on volatility strikes - Net Premium Lower Break Even = strike Price(L) + Net Premium
call
Buy 2 ATM call + Sell 1
Strategy - 20 :- Short Call Neutral on Mkt direction and Diff between 2 Upper Break Even = Strike Price(H) - Net Premium
20 ITM Call + Sell 1 OTM Net Premium paid Lower Break Even = strike Price(L) + Net Premium
Butterfly bullish on volatility strikes - Net Premium
call
Buy 1 ITM Call(LS) +
Strategy - 21 :- Long Call Sell 1 ITM Call(LM) + Upper Break Even = Strike Price(H) - Net Premium
21 Low volatility Limited Limited Lower Break Even = strike Price(L) + Net Premium
Condor Sell 1 OTM Call(HM) +
Buy 1 OTM Call(HS)
Sell 1 ITM Call(LS) +
Strategy - 22 :- Short Call Breakout expected but Buy 1 ITM Call(LM) + Upper Break Even = Strike Price(H) - Net Premium
22 Limited Limited Lower Break Even = strike Price(L) + Net Premium
Condor direction not sure Buy 1 OTM Call(HM) +
Sell 1 OTM Call(HS)
Note :- LS = Lower Strike Price; HS = Higher Strike Price; LM = Lower Medium Strike Price & HM = Higher Medium Strike Price
Buyer of call and seller of put benefits when market goes up.
Profits of Buyer are unlimited whereas profits of seller are limited upto premium received.
In adverse situation, buyer suffers losses upto max premium paid whereas seller suffers unlimited losses.
SHAILESH SHINDE (M) 9870381515 Email : taxcalling@gmail.com