Options Strategies Guide
Explore foundational income and directional strategies, their risk/reward trade-offs, and when to deploy them.
Long Call
Buy a call when bullish on the underlying.
- Risk: Premium paid.
- Reward: Unlimited.
- Breakeven: Strike + premium.
Long Put
Buy a put when bearish.
- Risk: Premium paid.
- Reward: Up to strike − premium.
Covered Call
Sell a call against 100 shares you own to generate income.
- Risk: Stock upside capped above strike.
- Reward: Premium + stock gains up to strike.
- Ideal When: Slightly bullish / neutral.
Cash-Secured Put
Short a put while holding cash to potentially buy stock at strike.
- Risk: Stock can fall to zero.
- Reward: Premium income.
- Ideal When: Slightly bullish / willing to own shares.
Visual Risk/Reward Profiles
(Placeholder for payoff diagrams – coming soon.)