The following are the common options trading strategies of 10:
1. Call Option Strategy
That is, if investors buy call options, they can lock in the risks, and the future rising market will bring unlimited benefits to investors. The breakeven point is the strike price of the option contract plus the premium.
Put option selling strategy
If investors see a slight increase or decrease in the market outlook, they can simply sell put options.
2. Buy put option strategy
By buying put options, investors can lock in the risk of rising prices, and future falling prices will bring unlimited returns to investors. The breakeven point is the strike price of the option contract minus the premium.
Selling call option strategy
If investors are bearish on the market outlook and do not rise, simply put, they can sell call options.
3. Covered call option strategy
When investors hold a neutral view on the market price or see little increase, buying futures contracts and selling a corresponding number of call options at the same time is an investment strategy suitable for low volatility.
4. Protective put option strategy
Protective put option refers to the strategy that investors buy futures contracts in the futures market when the price is bullish in the future, and at the same time, in order to prevent the price from falling sharply, they choose to buy a corresponding number of put options in the option market. When the volatility is large, the protected put option is more effective.
5. Bull market bullish spread strategy
Refers to the combination of investors who are bullish in the afternoon, buy call options with lower exercise price and sell call options with the same quantity, the same maturity date and higher exercise price.
The breakeven point is the long exercise price plus the net premium (selling income premium-buying expenditure premium). This spread combination becomes a vertical spread combination, which is characterized by limited profits and losses of buyers and sellers. The maximum value of the spread combination is the difference between the two execution prices.
6. Long bearish spread strategy
That is, by buying a put option and selling a put option with a higher exercise price, the strategic combination of risk and return is locked. The breakeven point is the long exercise price plus the net premium (selling income premium-buying expenditure premium).
7. Bear market bullish spread strategy
That is, by selling a call option and buying a call option with a higher exercise price, the strategic combination of risk and return is locked. The breakeven point is the strike price of the call option plus the premium difference.
8. Buy cross-option portfolio strategy
That is, by buying two call options and put options with the same exercise price at the same time, the risk and income are locked.
9. Selling cross-option portfolio strategy
That is to say, selling two call options and put options with the same exercise price at the same time can lock in the income and face unlimited risks.
l？ Buying a long-span portfolio strategy refers to the combination of call options and put options with the same number, lower exercise price and the same maturity date when investors expect large market fluctuations in the future.
l？ Selling wide-span portfolio strategy is also a strategy of collecting royalties, which refers to the combination of call options and put options with the same number, lower exercise price and the same maturity date when investors expect small market fluctuations in the future.
10. Butterfly price difference strategy
Its construction method is to buy a call option (or put option) with a lower exercise price, buy a call option (or put option) with a higher exercise price, and sell a call option (or put option) with two exercise prices in the middle (between the first two exercise prices).
The above are just some common options trading strategies, and each strategy has its own specific advantages and risks. In the actual transaction, choose the appropriate strategy according to the individual's investment goal, risk tolerance and market viewpoint.