Options are a type of financial derivative that can be used for hedging, insurance, arbitrage and other combination strategies. They allow the buyer to purchase (call options) or sell (put options) the underlying asset at an agreed price within a specific period of time. The rights to assets, but the buyer is not required to exercise such rights and can freely choose to sell or exercise the rights.

The following are 10 common options trading strategies:

1. Buying call option strategy

That is, if investors buy call options, they can lock in Risk, rising market prices in the future will bring unlimited benefits to investors, and the break-even point is the exercise price of the option contract plus the premium.

Selling Put Option Strategy

If investors are optimistic that the market outlook will increase or decrease slightly, they can simply sell put options.

2. Buying put option strategy

By buying put options, investors can lock in the risk of rising market prices. The falling market in the future will bring unlimited benefits to investors. The break-even point is the exercise price of an option contract minus the premium.

Selling call options strategy

If investors are optimistic about the market outlook and see a slight decline and no rise, in simple terms, they can sell call options.

3. Covered call option strategy

When investors hold a neutral view on the market price or are bullish, they buy futures contracts and sell a corresponding number of call options. The combination is an investment strategy suitable for situations with low volatility.

4. Protective put option strategy

A protected put option means that when investors are bullish about future prices, they buy futures contracts in the futures market, and at the same time, in order to prevent the price from falling sharply, Choose a strategy of buying a corresponding number of puts in the options market. Protected puts are more effective when volatility is higher.

5. Bull market call spread strategy

It means that investors are bullish in the market outlook, buy call options with lower exercise prices, and sell equal quantities and the same expiration date at the same time. A combination of call options with higher strike prices.

The break-even point is the long exercise price plus the net premium (premium from selling - premium paid from buying). This kind of spread combination also becomes a vertical spread combination. The characteristic of a vertical spread combination is that the profits and losses of both buyers and sellers are limited. The maximum value of the spread combination is the difference between the two exercise prices.

6. Bull market put spread strategy

That is, by buying a put option and selling a put option with a higher exercise price, the strategy combination of locking in risk and return is achieved. The break-even point is the long exercise price plus the net premium (premium earned from selling - premium paid from buying).

7. Bear call spread strategy

That is, by selling a call option and buying a call option with a higher exercise price, a combination of risk and return strategies are locked in. The break-even point is the strike price of the sold call option plus the premium differential.

8. Buying straddle option combination strategy

That is, a strategy combination that locks in risk and return by simultaneously buying two call options and put options with the same exercise price.

9. The strategy of selling straddle options

It is a strategy combination that locks in profits by simultaneously selling two call options and put options with the same exercise price and faces unlimited risk.

l? The buying wide straddle portfolio strategy means that investors anticipate greater market volatility in the future and buy call options while simultaneously buying put options of equal quantity, lower exercise price, and the same expiration date. combination.

l? The selling wide straddle strategy is also a strategy for collecting premiums. It means that investors expect the market to be less volatile in the future and sell call options. At the same time, they sell the same quantity and the exercise price is higher. A combination of low put options with the same expiration date.

10. Butterfly spread strategy

The construction method is to buy a call option (or put option) with a lower exercise price and buy a call option with a higher exercise price. Option (or put), the sale of a call (or put) with two intermediate strike prices (between the strike prices of the first two).

These are just some common options trading strategies, each with their own specific advantages and risks. In actual trading, choose a suitable strategy based on personal investment goals, risk tolerance and market views.