High Level Options Strategies Worth Considering

As I have mentioned, the mathematics of options is enormously complex. There are many high-level options strategies based on combinations of puts and calls, writing or purchasing, different strikes, and expirations. They are not for the new trader!

Some of these have exotic names, such as condor or butterfly, derived from the graph of profit-and-loss calculations for the strategy. (See Figure below.) I know, not much more impressive than the so-called Big Dipper constellation. But where would we be without imagination?

[caption id="attachment_13307" align="alignleft" width="370"]Exotic Option Strategies Exotic Option Strategies[/caption]

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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