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Basic Strategies

Basic Strategies are like bricks in a wall!
CHAPTER I - Naked Options Strategies
CHAPTER II - Vertical Spreads
CHAPTER III - Options Straddle - Options Strangle
CHAPTER IV - Risk Reversals

Basic Strategies

BASIC OPTIONS STRATEGIES - CHAPTER I
Naked Option Strategies
Long calls
One of the very first strategies using options consists in purchasing calls
Long put
Purchasing puts one of the two basic option strategies, simple and effective.
Writing puts
Writing puts is a very widespread strategy amongst asset managers, in order to increase the profitability of the funds.
Writing calls
Writing a call is a strategy extremely used by asset managers and funds.
The call spread : A first attempt
Long call spread is a simple strategy which combines the purchase and the sale of two calls.
Long Put Spread : A First Attempt
Long Put Spread is a fundamental strategy which combines the purchase and the sale of two puts.
Long Call Spread : Delta
Speed for the call spread value : the delta ∆
Long Call Spread : Gamma
Acceleration for the call spread value.
The Call Spread : Skew Effect
The presence of skew modifies first of all the price of a call spread.
BASIC OPTIONS STRATEGIES - CHAPTER III
Option Straddle - Option Strangle
Option Straddle : a first attempt
The straddle is one of the basic strategy using options.
The straddle
Up ? Down ? Both ? That'is straddle
Straddle : The Delta ∆
The straddle is a remarkable strategy because it's BiDirectional.
Straddle : The Gamma Г
Straddle is the most famous strategy when trying to 'gamma scalp' : this is why...
Straddle : The Vega υ
Straddle positions and volatility are linked.
Strangle : A first attempt
Strangle is of the same family as the straddle
Strangle
Strangle is a simple variation on Straddle's theme
Risk-Reversal : A First Attempt
This is one of the most flexible strategies using options..
Risk-Reversal
Risk reversals are nothing but a question of volatility...

Other articles
- Basic Strategies -
BASIC OPTIONS STRATEGIES - CHAPTER I
Naked Option Strategies
- Relationships Between Option Sensitivities -
Time and volatility Equivalence
Time and Implied Volatility have the same effect on an option price.
- Other Derivatives -
Other Derivatives - CHAPTER II
Turbo Warrants
- Basic Strategies -
Long Call Spread : Delta
Speed for the call spread value : the delta ∆
- Futures and Equity Options Trading Strategies -
Suite et fin du butterfly sur le CAC
Suite et fin du butterfly sur le CAC : c'est fini, en gain, et il est temps de tirer une conclusion.
- Advanced Strategies -
Calendar spread : the delta ∆
The calendar spread is an (almost) symmetric strategy. It thus has to be translated in the delta ∆.