Playbook: Spreads: the Dual Bear Spread (Delta Buster)
Dual Bear Spread (Delta Buster) The delta buster combines an inexpensive ATM long bear put spread , typically 10-point/$10 wide, with an expensive OTM short bear call spread that results …
Income strategy
Playbook: Spreads: the Short Iron Condor
Short Iron Condor This strategy can be profitable for stocks that are rangebound (have no direction, go sideways). It is the combination of a bull put spread and a bear …
Playbook: Spreads: the Bear Call
Bear Call The bear call (or ‘call credit spread’) is a vertical credit spread (you will receive a premium for it). It is a short call ‘protected’ on the upside …
Playbook: Spreads: the Bull Put
Bull Put The bull put (or ‘put credit spread’) is a vertical credit spread (you will receive a premium for it). It is a short put ‘protected’ on the downside …
Playbook: Spreads: the Bear Put
Bear Put The bear put is a vertical debit spread (you will have to pay for it). It is a long put ‘protected’ on the upside by a short put. …
Playbook: Spreads: the Bull Call
Bull Call The bull call is a vertical debit spread (you will have to pay for it). It is a long call ‘protected’ on the downside by a short call. …
Playbook: Basis: the Long Put
Long Put The long put is the opposite of the long call. A put is an option to sell. The seller has the obligation to take the other side (sell …
Playbook: Basis: the Short Put
Short (Naked) Put The short put (or ‘naked put’) is the opposite of the short call and looks like the long call since it is also bullish. It is a …
Playbook: Asset-Based: the Covered Call
Covered Call This is one of the most used income strategies and is highly effective when done on a regular (monthly) basis. Covered call = own/buy (long) underlying + sell …
Playbook: Asset-Based: The Secured Cash Put
Cash-Secured Put When running this strategy, you may wish to consider selling the put slightly out of the money. If you do so, you’re hoping that the stock will make a …