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Sideways Strategies

Now we get to the fun stuff. You have read through the basic and advanced options concepts pages and no doubt you started to see how options could benefit you and your investments. You saw how you could leverage options to limit your risk and still maintain enormous upside potential. Now let us show you a few of the strategies options traders use to make money under sideways or neutral market conditions.

There are many ways traders can take advantage of bullish or bearish market outlooks. However, Optionetics also teaches strategies that can benefit traders in sideways markets. These strategies remain true to Optionetics’ risk management focus and provide unique opportunities for an individual to respond to existing market conditions rather than waiting for an upturn or downturn. This section examines strategies that can be used when the underlying security moves sideways.


Here is an overview of the topics that we cover:

  • Calendar Spread: Understand how to implement a spread that benefits when the underlying stock is range bound in the shorter-term, but bullish or bearish long-term.

  • Long Butterfly: Learn how to combine vertical call or put spreads for a range-bound outlook.

  • Long Condor: Learn how to combine vertical spreads for a range-bound outlook with a little more leeway.

  • Long Iron Butterfly: Understand how to use puts and calls together in a range-bound market.

 

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