Key Option Position Strategies 
bear markets bull markets Select a strategy below to see more details about the definition, risk, possible gain, time decay effect, increasing IV effect, and a profit/loss risk graph.
Strategy Strategy Type Risk / Reward
Backspread Bullish or Bearish Limited / Limited
Bear Call Spread Bearish Limited / Limited
Bear Put Spread Bearish Limited / Limited
Bull Call Spread Bullish Limited / Limited
Bull Put Spread Bullish Limited / Limited
Collar Trade Bullish Limited / Limited
Covered Call Bullish Limited Large / Limited
Covered Combo Bullish Limited / Limited
Diagonal Debit Spread Bullish or Bearish Limited / Limited
Horizontal Debit Spread Neutral, Bullish or Bearish Limited / Limited
Long Calls Bullish Limited / Unlimited
Long Puts Bearish Limited / Limited Large
Long Straddle Neutral Limited / Unlimited
Naked Put Sale Bullish Limited / Limited Large
Protective Put Bullish Limited / Unlimited
Short Straddle Neutral Unlimited / Limited