Overview

15 Essential Option Strategies for Investors to generate income, hedge your portfolio or speculate on a trend, options can be a profitable addition to your investment mix. However, they carry risks ranging from the potential loss of your entire investment to unlimited losses in some strategies.

Having the right tools to help you learn and understand these complex trading instruments is critical for success.

Short Put Butterfly Strategy Explained: Your Roadmap to Profits

15 Essential Option Strategies for Investors provides the knowledge and resources to build your skillset and implement the most important single-leg options trading strategies. Each chapter offers a step-by-step walk-through, making it easy to learn and apply the key concepts. You will start with the basics of single-leg options trades that offer the highest income potential, followed by more advanced strategies that require multiple leg trades to execute.

Chapter 8 – Bull Call Spread

The bull call spread is one of the most common options strategies for investors to implement when they have a bullish view of the underlying asset’s price movement. This strategy consists of buying two OTM call options and selling one ITM call option. The P/L chart below shows that you can earn unlimited profits when the stock moves up and a limited profit if it goes down.