Learn every options strategy and concept — what it is, when to use it, and its risk/reward — then open it in the calculator with one click. Guides.
Open the calculator →A long call is the simplest bullish options trade: you buy a call to profit if the stock rises above the strike before expiration. Risk is limited to the premium paid; upside is theoretically unlimited.
A long put profits when the stock falls. You buy a put for the right to sell at the strike; losses are capped at the premium while profits grow as the stock drops toward zero.
A covered call sells a call against 100 shares you own to collect premium income. It caps upside at the strike in exchange for a cushion and steady yield — a favorite of income investors.
Selling a cash-secured put earns premium and obligates you to buy the stock at the strike if assigned — a way to get paid while waiting to buy a stock cheaper.
A naked (short) put sells a put to collect premium without setting cash aside. It profits if the stock stays above the strike, with substantial risk if it falls sharply.
A bull call spread buys a call and sells a higher-strike call to lower cost. Both risk and reward are capped — a cheaper, defined-risk way to play a moderate move up.
A bear put spread buys a put and sells a lower-strike put. Defined risk and reward make it a cost-efficient way to profit from a moderate decline.
A bull put credit spread sells a put and buys a lower-strike put for protection, collecting a net credit. It profits if the stock stays above the short strike — a high-probability income trade.
A bear call credit spread sells a call and buys a higher-strike call, collecting a credit. It profits if the stock stays below the short strike.
An iron condor sells an out-of-the-money put spread and call spread at once, collecting premium that you keep if the stock stays within a range. Defined risk on both sides.
A long butterfly combines a bull and bear spread to profit if the stock pins near the middle strike at expiration. Low cost, defined risk, high reward-to-risk near the target.
A long straddle buys a call and a put at the same strike to profit from a large move in either direction — often used around earnings or major events.
A long strangle buys an out-of-the-money call and put. Cheaper than a straddle but needs a bigger move to pay off — a low-cost bet on volatility.
A collar protects a stock position by buying a put and financing it with a covered call. It caps both downside and upside — low-cost insurance for gains you want to keep.
A call calendar sells a near-term call and buys a longer-term call at the same strike, profiting from faster decay of the front option. Multi-expiration, defined risk.