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

S.NO. PARTICULARS Expectations Position Break EvenRisk 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

3Strategy - 3 :- Synthetic Long Call / Protective Call

Conservatively BullishBuy Stock + Buy Put

Option

Stock Price + Put Premium - Strike

PriceUnlimited

Put Strike Price + Put Premium + Stock Price - Put Strike Price

4 Strategy - 4 :- Long Put Bearish - market goes down Buy Put Option Premium Unlimited Strike Price - Premium

5 Strategy - 5 :- Short Put Bullish - market goes up Sell Put Option Unlimited Premium Strike Price - premium

6 Strategy - 6 :- Covered CallShort term neutral to

moderately bullishBuy Stock + Sell Call

OptionStock Price - Call

Premium

(Call Strike Price - Stock Price) + Premium Paid

Stock Price - Premium

7 Strategy - 7 :- Long Combo Bullish on stockSell Put Option + Buy

Call OptionUnlimited Unlimited Higher Strike Price + Net Debit

8Strategy - 8 :- Synthetic Long Put / Protective Put

Conservatively BearishShort Stock + Buy Call

Option

Call Strike Price - Stock Price +

Premium

Stock Price - Premium

Stock Price - Call Premium

9 Strategy - 9 :- Covered Put Neutral to BearishShort Stock + Short Put

OptionUnlimited

(Stock Price - Strike Price) + Put Premium

Stock Price + Put Premium

10Strategy - 10 :- Long Straddle

short term significantly volatile

Buy Put Option + Buy Call Option

Premium Unlimited Upper Break Even = Strike Price + Premium Lower Break Even = strike Price - Premium

11Strategy - 11 :- Short Straddle

Very Little VolatilitySell Put Option + Sell Call Option

Unlimited Premium Upper Break Even = Strike Price + Premium Lower Break Even = strike Price - Premium

12Strategy - 12:- Long Strangle

Very High Level of VolatilityBuy OTM Put + Buy

OTM CallPremium Unlimited Upper Break Even = Strike Price + Premium Lower

Break Even = strike Price - Premium

13Strategy - 13 :- Short Strangle

Very Little VolatilitySell OTM Put + Sell

OTM CallUnlimited Premium Upper Break Even = Strike Price + Premium Lower

Break Even = strike Price - Premium

Option Buyer

S.NO. PARTICULARS Expectations Position Break EvenRisk Reward

Option Buyer

14 Strategy - 14 :- Collar Conseratively BullishBuy Stock + Buy Put +

Sell CallLimited Limited

Stock Price - Call Premium + Put Premium

15 Strategy - 15 :- Bull Call Spread Strategy Moderately bullish

Buy ITM Call + Sell OTM Call

Unlimited if stock price falls below lower strike price

Strike Price of OTM - Strike Price of ITM -

net Debit

Strke Price of call Purchased + Net Debit Paid

16 Strategy - 16 :- Bull Put Spread Strategy Moderately bearish

Sell ITM Put + Buy OTM Put

Unlimited if stock price falls below lower strike price

Strike Price of ITM - Strike Price of OTM -

net DebitStrke Price of short Put - Net Premium

17 Strategy - 17 :- Bear Call Spread Strategy mildly bearish

Sell ITM Call + Buy OTM Call

Strike Price of OTM - Strike Price of ITM -

net Debit

Net Premium received

Lower Strike +Net credit

18 Strategy - 18 :- Bear Put Spread Strategy mildly bearish

Buy ITM Put + Sell OTM Put

Net Premium paidStrike Price of OTM - Strike Price of ITM -

net DebitStrke Price of Long Put - Net Premium

19Strategy - 19 :- Long Call Butterfly

Neutral on Mkt direction and bearish on volatility

Sell 2 ATM call + Buy 1 ITM Call + buy 1 OTM

callNet Premium paid

Diff between 2 strikes - Net Premium

Upper Break Even = Strike Price(H) - Net Premium Lower Break Even = strike Price(L) + Net Premium

20Strategy - 20 :- Short Call Butterfly

Neutral on Mkt direction and bullish on volatility

Buy 2 ATM call + Sell 1 ITM Call + Sell 1 OTM

call

Diff between 2 strikes - Net Premium

Net Premium paid Upper Break Even = Strike Price(H) - Net Premium Lower Break Even = strike Price(L) + Net Premium

21Strategy - 21 :- Long Call Condor

Low volatility

Buy 1 ITM Call(LS) + Sell 1 ITM Call(LM) +

Sell 1 OTM Call(HM) + Buy 1 OTM Call(HS)

Limited Limited Upper Break Even = Strike Price(H) - Net Premium Lower Break Even = strike Price(L) + Net Premium

22Strategy - 22 :- Short Call Condor

Breakout expected but direction not sure

Sell 1 ITM Call(LS) + Buy 1 ITM Call(LM) +

Buy 1 OTM Call(HM) + Sell 1 OTM Call(HS)

Limited Limited Upper Break Even = Strike Price(H) - Net Premium Lower Break Even = strike Price(L) + Net Premium

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