The Four Basic Options Strategies

Terminology note: Be careful not to associate buying with calls only. You may also buy or purchase a put.
  1. Purchasing a call.
    • Profit if prices go up.
  2. Purchasing a put.
    • Profit if prices go down.
  3. Writing a call.
    • Profit if the call buyer is incorrect.
  4. Writing a put.
    • Profit if the put buyer is incorrect.
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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