1 Protective Put

Protecting downside risk going while long in Stock / Index

Used by MF managers & FIIs
BUY Stock Risk Reward Setup
BUY ATM Put Limited UnLimited Bullish

2 Protective Call
Protecting upside risk while going short in stock / Index
Used by MF managers & FIIs
SELL Stock Risk Reward Setup
BUY ATM Call Limited UnLimited Bearish

3 Long Strangle For less margin requirement

Expect Huge volatility in either direction
Used by MF managers & FIIs
BUY OTM Call Risk Reward Setup
BUY OTM Put Limited UnLimited Volatility

4 Bull Call Spread For less margin requirement

Used by freshers & people who have less time to follow

BUY ATM Call Risk Reward Setup

Sell OTM Call Limited Limited Mildly Bullish

5 Bear Put Spread

Used by freshers & people who have less time to follow
Used by MF managers & FIIs
BUY ATM Put Risk Reward Setup
Sell OTM Put Limited Limited Mildly Bearish

MASTER STRATEGIES

6 Call Back Spread

Advance option Strategies
Used by MF, FIIs, Hedge Funds
Sell 1 ITM Call Risk Reward Setup
BUY 2 OTM Call Limited Unlimited Bullish
* Net off from premiums from above should be positive to get profits
i.e say ITM Call = 11, OTM Call = 5

7 Put Back Spread

Advance option Strategies
Used by MF, FIIs, Hedge Funds
Sell 1 ITM Put Risk Reward Setup
BUY 2 OTM Put Limited Unlimited Bearish
* Net off from premiums from above should be positive to get profits
i.e say ITM Put = 11, OTM Put = 5

8 STRAP - Not to be traded for SIX months

 Advance option Strategies
Used by MF, FIIs, Hedge Funds
BUY 1 ATM Put Risk Reward Setup
BUY 2 OTM Call Limited Unlimited BULLISH

9 Iron Butterfly
Advance option Strategies
Used by MF, FIIs, Hedge Funds
SELL 1 ATM Call Risk Reward Setup
SELL 1 ATM Put Limited Limited Range Bound
BUY 1 OTM Call
BUY 1 OTM Put

Use it for Index like NIFTY, Buy on Friday 11 AM for next expiry week
Square off when achieve 50-60% profits
Example
Sell 11200 CE @75
Total Premium =75+100 = 175
Sell 11200 PE @100
Buy 11300 CE@40
Total Premium =40+55 = 95
Buy 11100 PE@95
Difference Prem = 175-95 = 80
Risk = 100-80 = 20 Points
Reward = 80 Points
Setup - No result condition, No maker and checker required

10 Collar - Used for Hedging the portfolio

Hold Cash Market Shares Equal to Lot size

BUY 1 ATM Put
SELL 1 deep OTM Call
Deep OTM = 4 Stries away from ATM (Leave 4 strikes from ATM)

11 Strip
Advance option Strategies Huge Volatility
Used by MF, FIIs, Hedge Funds during expiry
BUY 2 ATM Put Risk Reward Setup
BUY 1 ATM Call Limited Unlimited Bearish