Strategy Name Market View The Trade Premium Margin

Buy Call Very Bullish Buy a Call Option Pay No

Moderately Buy a Call & Sell a Higher Call

Buy Call Spread Pay Required
Bullish to Reduce Premium

Sell Put Mildly Bullish Sell a Put Option Receive Required

Sell a put, and buy a lower

Sell Put Spread Mildly Bullish strike cheaper put for Receive Required
protection

Buy Put Very Bearish Buy a Put Option Pay No

Buy a Put, and sell a lower

Moderately
Buy Put Spread strike cheaper Put to reduce Pay Required
Bearish premium

Mildly
Sell Call Sell a Call Option Receive Required
Bearish

Sell a call and buy a higher

Mildly
Sell Call Spread strike cheaper call for Receive Required
Bearish protection

Sell a Put and Call at the same

Range strike near the stock price.
Sell Straddle Bound, Not Receive Required
Your view is that the stock will
Moving not go up or down
 Sell a Put below stock price
Range and sell a Call above the stock
Sell Strangle Bound, Not price. Your view is that the Receive Required
Moving stock will not cross the call or
put strikes.

Sell a put and call at the same

strike near the stock price.
Range Your view is that the stock
Short Iron Butterfly Bound, Not wont go down or up. Buy a Receive Required
Moving lower Put and a higher call for
protection on both sides just
in case you're wrong.

Sell a Put below stock price

and sell a Call above the stock
Range price. Your view is that the
Short Iron Condor Bound, Not stock won’t cross these strikes. Receive Required
Moving Buy a lower Put and a higher
Call for protection on both
sides just in case you're wrong.

Buy a put and call at the same

strike near the stock price.
A Big move
Buy Straddle Your view is that the stock will Pay No
Up or Down either go down or up in a big
way.

Buy a Put below stock price

and buy a Call above the strike
A Big move price. Your view is that if there
Buy Strangle Pay No
Up or Down is a breakout, the stock will
cross either of these strikes by
a margin

Buy a put and call at the same

strike near the stock price.
A Significant Your view is that the stock will
Long Iron Butterfly Move Up or Pay Required
go down or up. Sell a lower
Down put and a higher call on both
sides for reducing premium

Buy a Put below stock price;

Buy a Call above the stock
A Significant price. Your view is that the
Long Iron Condor Move Up or Pay Required
stock will cross these strikes.
Down Sell a lower put and a higher
call for reducing premium
When to Do Pros Cons

* When you expect quick, big, up Most options,

moves especially Out of the
* Ideally when IV is low Limited Loss Money options do not
* Not for small moves or slow up make money.
moves

* Cheper than Buying a Call

When you expect a Big but limited * Pay Only for the Limited Upside Require Margin
Up Move you want
* Less Theta & Lower IV Risk

* If the stock will not go down - that
is i) stays still, ii) small or big upmove
or iii) a very small downmove
* Avoid selling when IV is low
Make money even if you are slightly
Very high loss if market
wrong, that is the stock moves
crashes
down a bit

* Make money even if you are

* If the stock will not go up - that is i) slightly wrong, that is the stock
stays still, ii) small or big upmove or moves down a bit. Not much. Max loss is
iii) a very small downmove. * If you are wrong the lower buy put capped.
* Avoid selling when IV is low. prevents big losses and acts like a
stop loss

* When you expect very quick, very Most options,

big, down moves especially Out of the
* Ideally when IV is low Limited Loss Money options do not
* Not for small moves or slow down make money.
moves

* Cheaper than buying a Put.

When you expect a big but limited * Pay only for the limited upside you None
down move want.
* Less theta and lower IV risk

* If the stock will not go up - that is i)

stays still, ii) small or big downmove Make money even if you are slightly Very high loss if stock
or iii) A very small upmove wrong, that is the stock moves up a moves up a lot
* Avoid selling when IV and premium bit
is low

* Make money even if you are

* If the stock will not go up - that is i) slightly wrong, that is the stock
stays still, ii) small or big downmove moves up a bit Not much. Max loss is
or iii) A very small upmove * If you are wrong the higher buy capped.
* Avoid selling when IV and premium call acts like a stop loss and prevents
is low big losses

* When the stock stays still and * Make money if nothing happens High loss if market
expires near the sell option strike. * Delta Neutral – Immune to small moves a lot in one
* Avoid trending markets moves direction
* Avoid selling low IV
 * Delta Neutral – Immune to small
* If the stock will stay still and expire moves High loss if market
between the call and put strike. * Make money if nothing happens moves a lot in one
* Avoid trending markets * Higher margin of safety compared direction
* Avoid selling low IV to straddle

* Delta Neutral - Immune to small

* If the stock will stay still and expire moves.
near the sell call and sell put strike. * Make money if nothing happens None
* Avoid trending markets * Limited loss
* Avoid selling low IV * Low vega risk and Theta risk

* If the stock will stay still and expire * Delta Neutral – Immune to small
between the call and put strike moves None
* Avoid trending markets * Make money if nothing happens
* Avoid selling low IV * Limited loss

* Low probability of
success
* When the stock is going to move * High loss if the stock
big in one direction Big upside if there is a Breakout stays rangebound
* Avoid buying high IV * High Vega and Theta
Risk

* Low probability of
success
* When the stock is going to move * High loss if the stock
big in one direction Big upside if there is a Breakout stays rangebound
* Avoid buying high IV * High Vega risk and
Theta Risk

* When the stock is going to move * Lower premium than straddle Low Probability of
big in one direction * Low Vega risk and theta risk Success
* Avoid buying high IV

* When the stock is going to move * Lower premium than straddle Low Probability of
big in one direction * Low Vega risk and theta risk Success
* Avoid buying high IV
Time & Volatility Max Loss Max Profit Link

* Gains if IV goes up
*nLoses time value Premium Very High https://web.sensibull.com/optionsStrategiesList/buyCall

every day

* Loses a little time Strike

value every day Net Premium Difference - Net
* Gains moderately if IV
https://web.sensibull.com/optionsStrategiesList/buyCallSpread

Premium
goes up

* Gains time value

every day Very High Premium https://web.sensibull.com/optionsStrategiesList/sellPut

* loses if IV goes up

* Gains a little time

value every day Strike difference -
* Loses slightly if IV Net premium Net Premium https://web.sensibull.com/optionsStrategiesList/sellPutSpread

goes up

* Loses time value

everyday Premium Very High https://web.sensibull.com/optionsStrategiesList/buyPut

* Gains if IV goes up

* Loses a little time Strike

value everyday Sell Premium - Difference - Net
* Gains moderately if IV Buy Premium
https://web.sensibull.com/optionsStrategiesList/buyPutSpread

Premium
goes up

* Gains time value

every day Very High Premium https://web.sensibull.com/optionsStrategiesList/SellCall

* Loss if IV goes up

* Gains a little time

value every day Strike difference - Sell Premium -
* Loses slightly if IV Net premium Buy Premium
https://web.sensibull.com/optionsStrategiesList/SellCallSpread

goes up

* Gains time value Call Premium +

every day Very High Put Premium
https://web.sensibull.com/optionsStrategiesList/sellStraddle

* Loses if IV goes up
* Gains time value Call Premium +
every day Very High Put Premium
https://web.sensibull.com/optionsStrategiesList/sellStrangle

* Loses if IV goes up

* Gains time value Strike price of long

everyday call - strike price Net Premium
* Loses moderately if IV of short call - net
https://web.sensibull.com/optionsStrategiesList/shortIronButterfly

goes up premium

* Gains time value Buy strike - Sell

everyday strike - Net Net Premium
* Loses moderately if IV
https://web.sensibull.com/optionsStrategiesList/shortIronCondor

premium
goes up

* Gains time value Call Premium +

decay every day Very High
Put Premium
https://web.sensibull.com/optionsStrategiesList/buyStraddle

* Gains if IV goes up

* Loses time value Call Premium +

every day Very High
Put Premium
https://web.sensibull.com/optionsStrategiesList/buyStrangle

* Gain if IV goes up

* Loses time value High strike -

every day middle strike -
Net Premium
* Gains slightly if IV net premium
https://web.sensibull.com/optionsStrategiesList/longIronButterfly

goes up received

Strike price of
* Loses time value short call -
every day Net Premium strike price of
* Gains slightly if IV
https://web.sensibull.com/optionsStrategiesList/longIronCondor

long call -
goes up premium
SL No Factor
1 Nasdaq Composite Index with movement of Index
2 Dow Jones Industrial Average
3 S&P 500
4 Europian Market
5 Asian Market
6 SGX Nifty
7 Crude Oil
8 Global Market vs Indian Market - Any trigger
9 FII and DII activity
10 India VIX
11 ADR of HDFC, Infy, TCS and other important stocks
12 Event and importance of the event - any Expected outcome of the event?
13 Nifty and Bank Nifty Max Pain
14 Open Interest Analysis - Highest Put and Highest Call levels
15 F&O Stock Analysis
How to Check Link
Investing.com https://in.investing.com/indices/nasdaq-composite-chart
Investing.com https://in.investing.com/indices/us-30
Investing.com https://in.investing.com/indices/us-spx-500
Investing.com
Investing.com
Investing.com
Investing.com

Sensibul.com
Zerodha
Investing.com
Sensibul.com
Sensibul.com
Sensibul.com
Stock Exchange Country Opening Time (IST) Closing Time (IST)
Japan Exchange Group Japan 5:30:00 11:30:00
Australian Securities Exchange Australia 5:30:00 11:30:00
Korea Exchange South Korea 5:30:00 11:30:00
SGX Nifty Singapore 6:30:00 23:30:00
Taiwan Stock Exchange Taiwan 6:30:00 11:00:00
Hong Kong Stock Exchange Hong Kong 6:45:00 13:30:00
Shanghai Stock Exchange China 7:00:00 12:30:00
Shenzhen Stock Exchange China 7:00:00 12:30:00
Deutsche Borse Germany 12:30:00 2:30:00
JSE Limited South Africa 12:30:00 20:30:00
Euronext European Union 12:30:00 21:00:00
SIX Swiss Exchange Switzerland 13:30:00 22:00:00
BME Spanish Exchange Spain 13:30:00 22:00:00
London Stock Exchange UK and Italy 13:30:00 22:00:00
BM&F Bovespa Brazil 18:30:00 1:30:00
New York Stock Exchange USA 19:00:00 1:30:00
NASDAQ USA 19:00:00 1:30:00
TMX Group Canada 20:00:00 2:30:00
Delta
Vega
Gamma
Theta
Sensitivity to undeerlying's price. Represented as 0.0 to 1.0 for Call and 0.0 to -1 for Put
Sensitivity to undeerlying's Volatility.
Sensitivity to Delta.
Sensitivity to Time Decay

Exected Range Formula for Any Timeframe

STOCK PRICE X IMPLIED VOLATILITY X SQRT(CALENDER DAYS TO EXPIRATION / 365 )

The probality of In The Money can be calculated as below :

Strike Price Selected < CMP

NORMSDIST((LN(Strike Price /Current Price)/(ATM PUT IV*SQRT(Days to Expiry/365))))

Strike Price Selected > CMP

1-NORMSDIST((LN(Strike Price /Current Price)/(ATM CALL IV*SQRT(Days to Expiry/365))))