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Optionetics Trading Education Center


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 any market conditions.

At Optionetics, we teach a variety of risk management strategies, each of which can be implemented depending on current market conditions. The great thing is that whether the market moves up, down, or sideways, we have a strategy that will profit from that movement! After reading this section, you should have a basic knowledge of what a few of those strategies are.

Here is an overview of the topics that will be addressed:

Bullish Strategies Bearish Strategies
Buying Calls:
Learn the basics of how to buy a simple call option.

Covered Calls:
Learn how to handle moderate price declines using covered calls.

Vertical Spread:
Introduction to the most basic limited risk strategy.

Bull Call Spread:
What to use in a moderately bullish market to provide high leverage over a limited range of stock prices.

Bull Put Spread:
Learn how to implement in a moderately bullish market.
Buying Puts:
Learn how to use when you anticipate a fall in the price of the underlying stock.

Covered Puts:
Learn how to protect a short position using puts.

Bear Call Spread:
Learn how to use options to limit your risk on bullish investments.

Bear Put Spread:
Learn how to implement in a moderately bearish market.