Bull Call Spread
Long lower-strike call financed by short higher-strike call.
- Group
- Bullish
- Risk Level
- Medium
- Legs
- 2
📈 Next Level
Intermediate Option Strategies
Combine two or more legs for precision. Spreads limit risk and cost, while volatility and neutral strategies thrive in specific market conditions.
Bull Put Spread
Short higher-strike put with protective lower-strike put.
- Group
- Bullish
- Risk Level
- Medium
- Legs
- 2
Cash-Secured Put
Short put backed by cash sufficient for assignment.
- Group
- Bullish
- Risk Level
- Medium
- Legs
- 1
Synthetic Long Stock
Long call and short put at same strike mimic long stock.
- Group
- Bullish
- Risk Level
- High
- Legs
- 2
Bullish Risk Reversal
Long call financed by short lower-strike put.
- Group
- Bullish
- Risk Level
- High
- Legs
- 2
Synthetic Call
Long shares paired with a long put, replicating a long call's payoff while still holding the actual stock.
- Group
- Bullish
- Risk Level
- Medium
- Legs
- 2
Bear Put Spread
Long higher-strike put financed by short lower-strike put.
- Group
- Bearish
- Risk Level
- Medium
- Legs
- 2
Bear Call Spread
Short lower-strike call with protective higher-strike call.
- Group
- Bearish
- Risk Level
- Medium
- Legs
- 2
Synthetic Short Stock
Short call and long put at same strike mimic short stock.
- Group
- Bearish
- Risk Level
- High
- Legs
- 2
Long Straddle
Long call and put at same strike benefit from large move.
- Group
- Volatility
- Risk Level
- High
- Legs
- 2
Long Strangle
Out-of-money call and put seek large move.
- Group
- Volatility
- Risk Level
- High
- Legs
- 2
Short Straddle
Short call and put at same strike benefit from flatness.
- Group
- Neutral
- Risk Level
- Very High
- Legs
- 2
Short Strangle
Short OTM call and put create wider profit region.
- Group
- Neutral
- Risk Level
- Very High
- Legs
- 2
Iron Condor
Defined-risk put and call spreads create profit range.
- Group
- Neutral
- Risk Level
- Medium
- Legs
- 4
Long Call Butterfly
Three-strike call structure concentrates payoff at middle.
- Group
- Neutral
- Risk Level
- Low
- Legs
- 3
Long Put Butterfly
Three-strike put structure concentrates payoff at middle.
- Group
- Neutral
- Risk Level
- Low
- Legs
- 3
Collar
Long shares with put floor and call ceiling.
- Group
- Neutral
- Risk Level
- Medium
- Legs
- 3
When to Use Intermediate Strategies
- Refined outlook: You have conviction but want risk defined
- Cost control: Sell premium to offset the cost of protection
- Market conditions: Tailored for bullish, bearish, or neutral environments
- Volatility plays: Profit from big moves or bet on calm markets
Strategy Categories
Spreads: Bull call/put spreads define both max profit and max loss. They cost less than buying outright options.
Volatility Trades: Straddles and strangles profit from large moves; if the market stays flat, they lose value.
Neutral Structures: Iron condors and butterflies thrive when price stays in a range, collecting premium as time passes.
Next Steps
Ready for more complexity? Explore advanced strategies that use ratio spreads, diagonals, and synthetic positions for experienced traders.