Strategy

Strategy Selection Quiz

By Dennis Bosmans · Updated June 2026 · 2 min read · Risk disclaimer

Picking the right structure for your view is half the battle. Match each scenario below to the strategy that fits it best.

Pick an answer for each question — your score appears at the end.

1. Question 1Strongly bullish with limited capital? A reasonable choice is…

   A short straddleA long call or bull call spreadAn iron condorA covered put

   A long call or debit call spread gives leveraged, defined-risk upside.

2. Question 2You own the stock and want income in a flat market…

   Buy a putSell a covered callBuy a callShort the stock

   A covered call collects premium when you expect little movement.

3. Question 3You expect the stock to stay in a range…

   A long straddleAn iron condorA long callA naked call

   An iron condor is the classic defined-risk range-bound income trade.

4. Question 4You expect a big move but are unsure of the direction…

   A covered callA long straddle or strangleA bull put spreadSelling premium

   A straddle or strangle profits from a large move either way.

5. Question 5You want to buy a stock lower and get paid to wait…

   Buy a callSell a cash-secured putBuy a putShort a call

   A cash-secured put pays you premium while you wait to buy at the strike.

6. Question 6Defined-risk neutral income strategies generally profit from…

   Large movesTime decayRising IVDividends

   Selling defined-risk premium harvests theta while price stays put.

Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy Policy · Terms & Conditions.