Neutral options strategies profit when a stock stays in a range or simply drifts, usually by collecting option premium as time decays. They include income trades like covered calls and cash-secured puts and defined-risk structures like the iron condor.
Bullish · Bearish · Neutral & Income · Volatility
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.
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 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.
A put calendar sells a near-term put and buys a longer-term put at the same strike, profiting from the faster decay of the front option. The put-based mirror of the call calendar — multi-expiration, defined risk.
Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.