Option strategies can be generally divided into three main categories: bullish, bearish and neutral. Bullish and bearish strategies can be applied when we have a directional bias relatively to the price of the underline security, whereas neutral strategies can be applied when we don’t know which direction the underline will follow or when we don’t aim to profit from a directional move but from other factors (i.e. implied volatility).
Under the menu tab ”options strategies” we will describe the most common used strategies which are more than enough in order for someone to be profitable in options trading.