Options Strategies
From covered calls to iron condors, master every options strategy used on NSE — with examples, payoff charts, and when to use each one.
- Why Did My Protective Put Not Save My Full Loss? A protective put doesn't save your full loss primarily because of the premium you pay for the option, which is a guaranteed cost. …
- What is the Best Strike Price to Sell a Covered Call? The best strike price for a covered call depends on your goal. Choose an out-of-the-money (OTM) strike if you want to generate inc…
- How Much Does a Protective Put Cost on a NIFTY Stock? A protective put on a NIFTY stock costs the premium per share multiplied by the number of shares in the lot size. For example, if …
- Is a Protective Put Worth the Cost in Indian Markets? A protective put is rarely worth the cost in Indian markets when used as monthly insurance, because high implied volatility and ti…
- What is a Short Call Strategy and When to Use It? A short call is an options trading strategy where you sell a call option. You do this when you believe the price of the underlying…
- Long Call vs Long Put — Understanding Directional Options Strategies A long call is an options strategy where you bet on a stock's price going up. A long put is the opposite strategy, where you bet o…
- Bull Call Spread vs Long Call — Which is the Better Bullish Trade? A Bull Call Spread is generally better for beginners as it has a lower cost, lower risk, and a higher probability of profit. A Lon…
- Credit Spread vs Debit Spread — What is the Difference? A credit spread involves receiving a net premium to open a position, profiting if the options expire worthless. A debit spread req…
- What is the Maximum Loss on a Bear Put Spread? The maximum loss on a bear put spread is strictly limited to the net premium paid to open the position. This amount is fixed and k…
- Why Did My Bull Call Spread Expire at Maximum Loss? A bull call spread hits maximum loss when the underlying stock or index price closes at or below the lower strike price at expirat…
- 5 Things to Check Before Setting Up a Credit Spread Setting up a credit spread involves selling one option and buying another, aiming to collect a premium. Before you trade, you must…
- Why Credit Spreads Sometimes Get Assigned Early Early assignment on a credit spread happens when the option buyer exercises their right before expiration, usually for American-st…
- How to Manage a Short Straddle When the Market Moves Against You Manage a short straddle when the market moves against you by first diagnosing the move, then applying one repair: roll the unteste…
- What Happens to a Straddle as Expiry Approaches? As expiry approaches, a straddle's value decreases rapidly due to time decay (theta). For the position to be profitable, the under…
- Is Long Straddle on Budget Day Actually Profitable? A long straddle on Budget Day is generally not a profitable strategy for beginners. While it seems like a great way to profit from…
- What is the Difference Between Long Strangle and Long Straddle Payoff? A long straddle uses the same strike price for both the call and put options, making it more expensive but profitable with a small…
- How to Trade NIFTY Monthly Expiry Using a Short Strangle A short strangle is an options strategy where you sell an out-of-the-money call and put option simultaneously. To trade NIFTY mont…
- Long Straddle for Retail Traders — Is It Practical in India? A long straddle is an options strategy where you buy both a call and a put option at the same strike price and expiry. While it se…
- What is a Call Butterfly Spread in Options? A call butterfly spread is an options strategy that aims to profit when an underlying asset's price stays within a specific, narro…
- How to Set Up an Iron Condor on NIFTY Step by Step An Iron Condor is a risk-defined options strategy for beginners in India, ideal for sideways markets like the NIFTY. To set it up,…
- What is the Maximum Profit on an Iron Condor? Among options strategies for beginners in India, the iron condor caps maximum profit at the net credit collected when opening the …
- What is the Breakeven of a Butterfly Spread? A butterfly spread has two breakeven points: lower breakeven equals the lowest strike plus the net premium paid, upper breakeven e…
- How to Profit from Range-Bound Markets Using Multi-Leg Options Strategies In range-bound markets, multi-leg options strategies — iron condor, iron butterfly, calendar spread, short strangle, and double di…
- What is a Ratio Iron Condor Strategy? A Ratio Iron Condor is an options trading strategy where you sell a different number of short options compared to the long options…
- What Happens to an Iron Condor on Options Expiry Day? On options expiry day, an iron condor achieves maximum profit if the underlying asset's price closes between the two middle strike…
- Best Options Strategies for a Bearish Market View in India The best options strategy for a bearish market view in India is the Bear Put Spread. It offers defined risk and lower cost, making…
- Best Options Strategies for a Neutral or Range-Bound Market in India For neutral or range-bound markets, options strategies like the Iron Condor, Short Strangle, and Long Iron Butterfly are effective…
- Which Options Strategies Work Best in High Volatility Markets? In high volatility, options strategies like the Long Straddle and Long Strangle work best because they profit from large price swi…
- How to Combine Multiple Options Strategies in One Portfolio Combining options strategies in one portfolio means layering premium selling, directional, and protective trades that each profit …
- How to Avoid the Most Common Options Strategy Mistakes Most beginner options losses come from buying cheap out-of-the-money options, ignoring theta decay and implied volatility, selling…
- 10 Questions to Ask Before Entering Any Options Strategy Before entering any options strategy, ask yourself 10 key questions to define your market view, risk tolerance, and profit targets…
- How to Read an Options Chain to Pick the Best Strategy Reading an options chain involves understanding its key columns like Open Interest, Volume, and Implied Volatility. By analysing t…