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.
38 articles- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- Long Call Options for Beginners in India — Complete Guide A long call gives you defined-risk upside on a stock you think will rise. For options strategies for beginners in India, pick… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- What is a 1:2 Call Ratio Spread and When to Use It? A 1:2 call ratio spread buys one call at a lower strike and sells two calls at a higher strike. It profits in sideways to mildly… 5 min read
- 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… 5 min read
- What is a Ratio Straddle Strategy in Options? A ratio straddle is an options strategy where you buy or sell unequal numbers of calls and puts at the same strike. Most often… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 5 Events That Make Long Straddles Profitable in India Long straddles in India are most profitable around five events: quarterly earnings, the Union Budget, RBI policy announcements… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 7 min read
- 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… 5 min read
- 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… 5 min read
- How to Use a Butterfly Spread to Target a Specific Price Level A butterfly spread profits most when the underlying closes exactly at your target strike. Pick three strikes, build four legs… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 6 min read
- Best Options Strategies for BANKNIFTY vs NIFTY — Key Differences Options strategies for beginners in India should start with NIFTY, where lower volatility rewards defined-risk spreads, iron… 5 min read
- 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… 5 min read
- 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… 5 min read
- 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… 5 min read